Cash in Ukrainian hryvnias (UAH)

History of cash hryvnia

Hryvnia officially became the national currency of Ukraine in 1996 — 5 years after the emergence of an independent state. The currency got its name from the ancient hryvnia in the form of a silver ingot, which was used for settlements since the XI century.

The name "hryvnia" came from the ornament of a hoop made of precious metals — often gold or silver — for wearing around the neck. In addition to the monetary unit, the hryvnia was also used to measure weight.

The hryvnia has its own sign (₴) appeared in 2003, but it was officially introduced only in 2004. The symbol itself resembles the dollar sign ($) but with the letter S turned up and two horizontal lines in the middle.

Denomination of notes and coins in hryvnias (UAH)

The first coins appeared in Ukraine in 1992. Initially, they were called "rezana", "hundredth", or "step", but later they changed their name to "kopeck", which was equal to one-hundredth of a hryvnia.

In different years, coins with denominations of 10 and 50 kopecks, 1, 2, 5 and 10 hryvnia were put into circulation. All these coins are used now. The kopecks of the new sample on one side of the coin depict the face value of the coin and on the other — the coat of arms of Ukraine.

The reverse side of the hryvnia depicts personalities who had a significant influence on the formation and development of the Ukrainian state:

• Vladimir the Great (1 hryvnia) — Prince of Kiev from 978 to 1015, who baptized Kiev;
• Yaroslav the Wise (2 hryvnias) — Prince of Kyiv from 1016 to 1054, who made Kyiv the most prosperous city;
• Bohdan Khmelnitsky (5 hryvnia) — a great military leader who liberated Hetmanshchina from Polish-Lithuanian rule;
• Ivan Mazela (10 hryvnia) was a military and political figure who made a significant contribution to the independence of Ukraine.

Hryvnia banknotes are even more diverse than coins: in circulation, you can find banknotes with denominations of 1, 2, 5, 10, 20, 50, 100, 200, 500 and 1000. As on coins, one side of the banknotes depicts significant political and cultural figures of Ukraine: in addition to those already listed, the poet Ivan Franko, historian Mykhailo Hrushevsky, writer Taras Shevchenko, poetess Lesya Ukrainka, philosopher Hryhoriy Skovoroda and scientist Volodymyr Vernadsky.

On the other side of the notes are printed important cultural objects from different cities, the most famous of which are Kievo-Pechersk Lavra, the building of the Central Rada of the UNR, Lviv Opera House and others.

The role of cash hryvnia in the economy

Cash plays a leading role in the Ukrainian economy: according to the National Bank of Ukraine (NBU), as of July 2023, the total amount of cash in Ukraine was almost UAH 712 billion.

Many companies and individuals prefer cash payments, and a third of Ukrainian residents do not have bank cards.

At the time of the introduction of the hryvnia into circulation, the exchange rate was UAH 1.76 to the US dollar. Like many CIS currencies, the hryvnia has been depreciating over time against the US dollar: in 2008, the USD exchange rate was already UAH 4.5, and in 2023, it was already UAH 32.76. In other words, the hryvnia has depreciated more than 18 times against the USD over 30 years. In 2023, the Ukrainian hryvnia entered the 25 worst currencies in the world, having declined by more than 25%.

The fall of the hryvnia has a dual role in the country's economy:

• On the one hand, imported and, in many cases, local goods become more expensive, causing citizens to buy less and spend more cash;
• On the other hand, foreign currency earnings from exports increase.

A short-term collapse of the exchange rate will not cause significant damage to the economy, but if it persists, or even more so, the state risks being on the verge of a crisis. UAH, including cash, is the main instrument of monetary policy of the National Bank of Ukraine, which can influence the exchange rate of UAH against foreign currencies. UAH is used in the country as the primary means of exchange, accumulation and unit of value measurement. The UAH exchange rate directly affects the quality of life of citizens and the state of Ukraine's economy as a whole.

Hryvnia occupies an insignificant position in the world economy: besides Ukraine, UAH cash is in demand in countries like Transnistria, Abkhazia and South Ossetia.

What you can exchange UAH cash for

You can pay with hryvnias for goods and services anywhere in Ukraine. In many cases, even online orders are available — you can pay for them in cash upon receipt. Only online services that you receive remotely will be unavailable.

The peculiarity of cash hryvnias is that you can pay with them everywhere. Unlike non-cash money, which may not be available due to lack of Internet connection or POS terminal, you will not have such problems with cash.

Hryvnias can also be exchanged for any other currencies available at a bank or broker, as well as various assets: stocks, bonds, precious metals, oil and even cryptocurrencies.

You can deposit cash through an ATM and get cashless currency, both national and foreign, but in the second case, you will lose some money on conversion fees. Besides, to deposit cash, you need to have a corresponding account.

How to get cash hryvnias for non-residents?

You can do it in several ways, and it is not even necessary to be a client of a Ukrainian bank:

• Withdraw cash from any card through an ATM with currency conversion. In this case, both withdrawal and conversion fees will be deducted;
• Go to the bank and exchange;
• Exchange through the application of the bank where the account is opened, provided that the organization supports UAH currency;
• Buy through a broker;
• Proxy exchange: exchange your currency first into another currency or some exchange asset (gold, stock or cryptocurrency) and then into UAH;
• Finally, you can exchange your currency into hryvnias from a private person, but this method opens up fraud risks.

However, it is essential to remember that you must have a UAH account to withdraw non-cash hryvnias. If you do not have a bank account, you can start electronic hryvnias in cash by asking an acquaintance or relative from Ukraine.