Learning how money works in Ukraine

At this point we feel it better not to comment on our situation with the boys. So since I haven't posted for a few days I thought I would talk about our experience with money in Ukraine.

First if you are bringing cash to exchange make sure that they are new uncirculated bills. Some banks or exchange companies have machines to verify that the bills are good but the safest method is new bills not folded.

Traveler's checks are not worth the hassle. If you have ever tried to pull out more than $10,000.00 in cash in the US then you are assumed to be a drug dealer and get to fill out extra forms and prove who you are and what you are using the money for. This is the same basic idea with traveler's checks in Ukraine.

Credit cards are accepted in some locations but are rather limited. Also make sure that you tell your bank the dates that you are traveling and where otherwise they will put a fraud block on your card. When I set up Skype I put an automatic refill from the credit card. However I told our bank we were traveling to Ukraine and Skype was billed from Sweden. Yes they stopped the payment. It's fixed now.

ATM cards. We were warned not to use these but they have been one of the easiest methods to use. Again make sure you have communicated to your bank that you want to use it outside the US. Also being slightly paranoid we limit the amount in the account and it is not our normal checking account card. We opened a new account with a bank that we have not used before. Then we left deposit slips with a neighbor and they add deposits as needed. There are still some catches to this. It has taken me an average of four ATM machines to get money. Sometimes they are not using a network that the card does. Sometimes the machines are out of money and sometimes they to not have enough for your request. Pulling out US $300-500 (2,000 - 3,500 Hryvna) is the equivelant of the average Ukrainian's monthly salary except in maybe Kyiv. So our plan is always to be pulling out what we need a few days in advance. Still I don't like carrying as much US currency as people told us too. ATM machines are very available in even small towns.

I assume this would also work with credit cards as most of the ATM's have Visa or Mastercard logos. Just haven't tried that yet.

The exchange rate was stable for most of the last two years that I have been watching it. Since we have been here it has really moved in our favor. We got 5.75 Hryvna (Greevna) to the dollar when we arrived and are now getting 7.50. Even including the fees it looks like we get the best exchange rate by using the ATM cards. ATM machines here are called bankomats.

This is clearly still a cash economy. And after hearing some stories I understand why. One person talked about a relative who bought a car taking out a loan. The bank wrote the note that said it had to be paid in hard currency. (Dollar, British Pound or Euro) As the exchange rate as gone up we have also noticed that the spread to buy dollars is now between 5-10%. This individual is now really hurting due to both the exchange rate and the extra cost.

Enough for now hopefully we can soon fill you in on more of the story. As my Aunt told us last night, whatever happens God is still in control. It's just easier to hear than put into practice.