What is the best way to save money from inflation and currency devaluation?
I live in one of the poorest and corrupt countries in Asia. The government is incompetent and laws only apply to the poor. The economy is shrinking and currency is going through constant devaluation against other moderately strong currencies in the world.
Over the years my bank deposits have lost their value several-fold. I am now desperately searching for an alternative to save - my savings are long term so that I can leave this country permanently along with all my savings.
Please give me the best idea to save my money from monetary inflation and devaluation.
Also suggest the best known legal way to move my money to another country when I migrate.
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Generally speaking, so-called "hard assets" (namely gold or foreign currency), durable goods, or property that produces income is valuable in a situation where a nation's money supply is threatened.
Gold is the universal hard asset. If you have access to a decent market, you can buy gold as bullion, coins and jewelry. Small amounts are valuable and easy to conceal. The problem with gold is that it is often marked up alot... I'm not sure how practical it is in a poor developing nation.
A substitute would be a "harder" currency. The best choice depends on where you live. Candidates would be the US Dollar, Euro, Australian Dollar, Yen, etc.
The right choice depends on you, the law in your jurisdiction, your means and other factors.
Devaluation is a relative term, so if you want to protect yourself against devaluation of your currency against dollars - just buy dollars.
Inflation is something you cannot protect yourself against because it is something that describes the purchasing power of the money. You will still need to purchase, and usually with money. A side effect of inflation is usually devaluation against other currencies. So one of the ways to deal with inflation is not to keep the money in your currency over time, and only convert from a more stable currency when you need to make purchases. Another way is to invest in something tangible that can easily be sold (for example, jewelery and precious metals, but it has other risks).
Re whats legal and illegal in your country - we don't really know because you didn't tell what country that is to begin with, but the usual channels like travelers' checks or bank transfer should work. Carrying large amounts of cash are usually either illegal or strictly regulated.
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