If there is a general national growth trend debt or even at the level of the same corporate business - its loan debt, and, among other things, the share of currency with potential growth relative to the national currency prevails in the structure of this loan portfolio, this is direct evidence that the level of national welfare in the near future it may decrease significantly in the future.
Therefore, with proper management and with such prerequisites, management always tries hard to change the structure of its debt portfolio - to exchange current foreign currency debt obligations for obligations in its national currency, even though the national debt rate will be much higher. Because interest rates, especially at the level of national interests, can be easily regulated at the level of their national monetary system.
Well, or, in a simple way, at the level of an ordinary person. In conditions where there is a high risk of dollar appreciation, and you have debts in this currency, it is probably more expedient to transfer them to the national currency (to re-credit), although the rate on this debt will be much higher.
In the case of devaluation of the national currency, the level of its depreciation will in any case exceed the level of interest rate growth, and in any case, the person will benefit (from fewer losses). That is, for example, the dollar exchange rate may increase by 2 times, and the rate on loans in the national currency.currency 1.5 times.
But there is one peculiarity in all this.
An ordinary person with debts is not of any national interest to the monetary system (the National Bank, for example), and therefore there can be no concessions for him in terms of lowering the interest rate. Therefore, for ordinary people in such conditions, it is better not to have debts at all.
There are practically no fixed rates on loans (if they are not under some government programs), and everything is tied to the refinancing rate (discount rate), i.e. rates are now mostly floating.
