The article examines how shocks to exchange rates and output uncertainty affect private savings in developing countries. Tight credit constraints in these countries can lead to reduced savings when faced with adverse shocks to commodity prices. The study finds that terms of trade shocks have a larger positive impact on savings in developing countries, especially the transitory component. However, the impact of these shocks is relatively small and asymmetric. Volatility shocks do not significantly impact private fixed investment in the countries studied. Overall, the findings suggest that developing countries are vulnerable to external shocks, but the effects on savings and investment are limited.