Ukrainian hryvnia is the national currency of Ukraine

History of the Ukrainian Hryvnia: From Origins to Present 

The Ukrainian hryvnia, both in name and as a monetary unit, has come a long way. The name “hryvnia” likely originated from the word used for ornaments worn around the neck, or “grivka”. According to Wikipedia, these ornaments were silver and gold hoops, thus it’s no coincidence that this word eventually became a symbol of wealth and solvency. In the 8th-9th centuries, hryvnias were used as weight measures in trade, and later as weighted coins. The hryvnia was introduced as a national Ukrainian currency in September 1996, but it existed as a measuring and payment tool for many centuries.

Earlier we wrote – What Is Recurring Payment – Definition, Types, Benefits, and Examples.

Changes in the Ukrainian Hryvnia 

For many centuries, hryvnias were only a measure of weight. In 1701, Peter the Great conducted a monetary reform and issued small silver coins called “grivenniks”, with their denomination marked as “гривенникъ”. Later, coins called “hryvnias” appeared, and in 1713, they were again issued under the name “гривенникъ“. 

With the new rulers of the Russian Empire, the coins changed their names several times. Initially, they had the year of issue on the obverse, and later, portraits of empresses. This was not yet the Ukrainian hryvnia, but the word “grivennik” was often used and associated with money.

Ukrainian Currency from the Ukrainian People’s Republic (UPR) to Independence 

In 1918, the Ukrainian People’s Republic (UPR) needed its own currency to meet market needs and become a symbol of the new state.

Ukrainian currency of 1918

The new Ukrainian currency was to be based on the gold reserve, which was lacking. It was necessary to decide how the Ukrainian currency would be issued:

  • Through the sale of landlords’ lands to peasants;
  • Based on the income from state monopolies. 

The second option was chosen, and a new Ukrainian currency, the karbovanets, was created. Later it was replaced by the Ukrainian hryvnia, but due to political events, the karbovanets again became the state currency. 

When Ukraine gained independence in 1991, both rubles and karbovanets were in circulation. However, the Ukrainian currency had to become another symbol of independence and unity, so in the 1996 reform, a single Ukrainian hryvnia was introduced with banknotes of 1, 2, 5, 10, 20, 50, and 100 hryvnias. 

It was impossible to issue hryvnias quickly, so coupon-karbovanets were printed. This helped ensure payments to budget workers, miners, and pensioners and avoided a shortage of money. Due to the lack of domestic printing capacities for hryvnias, Canadian and later British companies were involved. 

After a few years, it was possible to open its own Banknote Factory, and later the Mint appeared in Ukraine. Now, Ukrainian hryvnia banknotes and coins are produced in Ukraine using modern technologies and high-tech equipment. As can be seen, the history of the Ukrainian hryvnia is long and varied.

Video: Ukrainian Currency During Independence 

In the video, you can see the evolution of the Ukrainian currency over the past 30 years. You will learn about the main stages of hryvnia development, how the national currency was introduced, and what changes occurred with it over the decades. 

History of Ukrainian currency during independence – video

Modern Ukrainian Currency: Bright Design and High Level of Security 

Today, Ukrainian hryvnias are issued in various denominations. There are paper banknotes and coins, some of which are still in circulation in several versions. In 2019, a banknote with the highest denomination of 1000 hryvnias was printed. Due to significant inflation, it was planned to introduce 2000 hryvnias, but for now, the highest denomination in circulation remains one thousand. 

Most often, Ukrainians pay with 200 hryvnias with the portrait of Lesya Ukrainka on the banknote. The modern Ukrainian hryvnia has a contemporary design and is reliably protected from counterfeiting by a watermark, security thread, relief elements, combined image, multi-colored printing, micro text, and fibers visible in the light or under UV rays.

Conclisions

The Ukrainian hryvnia has a long history, dating back to silver and gold jewelry from the 8th and 9th centuries to the modern national currency introduced in 1996. Since then, the hryvnia has evolved from a measure of weight to a symbol of Ukraine’s national identity and independence. Modern hryvnias have a bright design and a high level of security, which ensures their reliability and ease of use.

Translated with DeepL.com (free version)

Frequently Asked Questions About Ukrainian Hryvnia

When did the first Ukrainian hryvnias appear? 

Ukrainian hryvnias are mentioned in “The Tale of Bygone Years”, meaning they were used as early as the 8th century. They were used as a weight measure. Silver and gold coins with images of princes were minted, but after the collapse of Kyivan Rus, hryvnia coins stopped being minted. Instead, weight coins and silver ingots were called “grivenniks” or “hryvnias”.

When did the first printed Ukrainian hryvnia appear? 

The first printed Ukrainian hryvnia appeared on March 1, 1918. The new currency unit equaled half a karbovanet. On the National Bank of Ukraine’s website, you can see an image of the 100 hryvnia banknote issued in 1918. It depicts farmers — a plowman and a woman with a sheaf of wheat.

Which Ukrainian hryvnia coin is most commonly used? 

The most common coin in circulation in Ukraine is 10 kopecks or 1/10 of a hryvnia. According to the National Bank, at least 4 billion 10-kopeck coins are in circulation out of the 14 billion various coins in circulation, not including commemorative and investment coins. Almost every Ukrainian has at least one 10-kopeck coin in their pocket or wallet.

How is the withdrawn Ukrainian hryvnia disposed of? 

Old, worn-out banknotes and those withdrawn from circulation are shredded in specialized automated systems, turning them into small pieces. The Department of Cash Circulation in the regions and the Central Vault of the National Bank dispose of Ukrainian currency.

Eddy Coherent – Finance Expert with Extensive Industry Experience
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Eddy Coherent is a finance expert with extensive experience in the industry, known for his deep understanding of financial markets and strategies. He shares his expertise on the WeaveMoney portal, where he translates complex financial concepts into actionable insights. Eddy's contributions are valued for their clarity and precision, helping readers make informed financial decisions.

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