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Prices rise fast and keep rising, so the money in your account buys less every month. If your salary and savings are in the local currency, you get poorer even without losing a single coin.
Time to act once this fires: 1-2 months
Keep only 1-2 months of expenses in the local currency. Move the rest of your savings into hard currency (euro, US dollar, Swiss franc). Fix big long-term costs now: rent, tuition, annual subscriptions. Skip long-term deposits in the local currency — inflation eats the interest.
Move savings into hard currency
Hard currency is a stable, widely trusted currency such as the euro, US dollar, or Swiss franc. Exchange the part of your savings you won't need in the next month or two and keep it in a foreign-currency account or with a broker. Check your banking app today — many banks let you open a EUR or USD account in a few minutes.
Avoid long-term deposits in the local currency
A deposit at 10% sounds good until you notice prices grew 15%: even with the interest, your money buys less than before. Compare your deposit rate with the official inflation rate (search "inflation rate" plus the country's name). If inflation is higher, keep the money flexible instead of locking it up for a year.
Fix your big recurring costs now
In high inflation, every price you haven't locked in will keep climbing. Ask your landlord for a longer lease at today's rate, prepay tuition and annual subscriptions, and where possible switch loans with a floating rate (payments that follow market rates) to a fixed one.
The macro conditions that define this scenario. Each marker's share is how much it adds to a country's score when its alarm line is crossed.
| Indicator | Alarm line | Share of the score |
|---|---|---|
| Inflation, CPI (annual) | above 15%, for 2 periods in a row | 67% |
| Real interest rate | below 0% | 33% |