Dollar instead of hryvnia: how Ukrainian officials keep their wealth
11 August 17:09
The National Bank of Ukraine (NBU) has downgraded its forecast for consumer price growth in Ukraine in 2025 to 9.7%. Inflation has indeed slowed from its May peak, but bankers, businesses, and households do not believe it will fall below 10% in the near future.
This may indicate a depreciation of the hryvnia, especially in the future if inflation expectations are realized. One can assess the situation in the country’s economy, in particular, by looking at what currency the rich and famous Ukrainians are investing in, which is what "Komersant Ukrainian" did.
On the one hand, according to the NACP, out of more than 1,500 verified declarations of officials in the first half of 2025, every third contained false information totaling more than UAH 5.8 billion, an average of more than UAH 13.6 million per declarant.
But today, declarations remain the source of information about what exactly and in what currency our officials keep, even if they “forget” to indicate something.
Does the head of the NBU trust the hryvnia or the dollar?
And if we are to take an example from anyone, it is from people involved in the banking sector. And if it’s the NBU governor himself, Andriy Pyshnyi, even more so. Moreover, given that the country’s chief banker urges citizens to invest in the hryvnia, it is interesting to know which currency he himself trusts.
In his declaration for the past year, Andriy Pyshnyi indicated that he had purchased two types of securities – Ukrainian government bonds:
- 665 pieces with a face value of UAH 1000 each
- 447 bonds with a face value of UAH 39,227.3 each, which is the equivalent of $1,000 at the NBU exchange rate.
The so-called “dollar” portfolio of bonds in Pyshnyi’s declaration amounts to UAH 17 million 534 thousand, or $447 thousand. The chief banker purchased only UAH 665 thousand worth of hryvnia bonds. The most interesting thing is that hryvnia government bonds have a yield of 15%, while foreign currency bonds have a yield of only 4-5%.
“The total investment of the Pyshnyi family in government bonds is UAH 18.2 million, of which only 3.7% are investments in hryvnia instruments. More than 96% are investments in dollar-denominated government bonds,” emphasizes economist Oleksiy Kushch, who has studied the chief banker’s declaration in detail.
At the same time, Pyshnyi himself has repeatedly stated: “We will support hryvnia assets as an attractive investment destination.”
Moreover, he explains the NBU’s high discount rate (which blocks lending to the economy) as a necessity to maintain the attractiveness of hryvnia financial instruments. According to Pyshnyi, the hryvnia’s yield supposedly protects investments better than the foreign currency. However, he does not invest in the hryvnia and does not take advantage of the financial consequences of the NBU’s 15.5% per annum discount rate.
“These are all rhetorical questions. You know the answers to them well. I’m not talking about such a “trifle” as making money on devaluation: the more the hryvnia depreciates, the more Pyshnyi’s family will earn on foreign currency bonds,” Kushch adds.
Officials who do not trust the hryvnia
It turns out that the NBU governor himself does not trust the hryvnia and keeps his savings in dollars. And he is not the only one.
The fifth president, Petro Poroshenko, the former head of the NBU, keeps more than $51.2 million in cash and a little bit in hryvnia – UAH 423.3 million. He has only UAH 331,292 in bank accounts, and the rest is in foreign currency: 3 589 180 $, 43 861 €, 50 109 £.
Ihor Cherkasky, former head of the Financial Monitoring Service, has $480,000 and €148,000 in cash and about UAH 200,000 on his bank accounts.
MP Anton Kisse has 130,000 euros and $570,000 in cash, and his wife has another $400,000.
All of them have more in foreign currency than in hryvnia.
Foreign currency accumulation: a growing trend
According to NBU estimates, in 2022-2024, Ukrainians increased the amount of cash foreign currency savings by $38 billion. In January 2025 alone, banks brought $1.769 billion to Ukraine, almost a record for the year.
Over the past 10-15 years, the hryvnia has devalued several times:
- in 2008 – after the financial crisis;
- in 2014-2015 – against the backdrop of the annexation of Crimea and the war in Donbas;
- in 2022 – due to a full-scale war and macroeconomic pressure;
- from 8 UAH/USD (in 2013) to 40 UAH/USD (at its peak in 2024).
Therefore, it has become a habit to keep the currency.
Trust in the dollar is not just about corruption
Financial analyst Ivan Stepovyi explains that officials, like businesses, are well aware of the risks of depreciation of hryvnia assets.
“Besides, we shouldn’t forget about the linkage of large expenses to the currency: real estate (especially abroad), premium cars, children’s education, treatment in the EU or the US – everything is paid in dollars or euros. Therefore, it is logical to accumulate exactly the currency in which you will spend.”
He adds:
- “Many officials do not trust banks;
- fear inflationary depreciation of deposits;
- they are afraid of the NBU’s currency restrictions;
- as well as the loss of funds in the event of a Ukrainian bank’s bankruptcy.
Most would prefer to keep their currency outside the country, as Petro Poroshenko does or former NBU Governor Valeria Gontareva did.
Officials, like most Ukrainians, do not trust the hryvnia because of its volatility, devaluation, and economic shocks. A conscious choice in favor of the dollar or the euro is not only about corruption or personal gain, but also about security and predictability. And Ukrainians, for that matter, should pay attention to the actions, not just the words, of those in power.
Balance of risk and return: is there an alternative?
A normal economic portfolio should include investments in hryvnia and foreign currency, bonds, and cash, says Oleg Pendzin, chairman of the Economic Discussion Club.
“Today, it is most profitable to invest in hryvnia government bonds, at a good interest rate and without paying taxes. (By the way, MP Petro Poroshenko invested UAH 156 million through his bank, which Ukrainians donated to his fund, and earned UAH 50 million on it – editor’s note).”
But, as the economist notes:
- “Foreign currency government bonds are less profitable;
- Deposits in foreign currency yield a maximum of 5% per annum;
- Global dollar inflation is ~3%, so without investments, it also depreciates;
- Investing today is always a risk for a Ukrainian.
Today’s conditions do not leave Ukrainians much choice.
The demand for cash currency among Ukrainians remains high. Confidence in banks is declining, especially after fiscal pressure has increased. The hryvnia is inferior to the dollar and euro in popularity – and this is, unfortunately, a reality that cannot be changed by slogans.
Author: Alla Dunina
