The hryvnia

The hryvnia was used as currency in Kievan Rus' in the eleventh century. The word hryvnia is thought to derive from the Slavic griva; c.f. Russian, Bulgarian and Serbian griva, "mane". Hryvnia may have indicated something valuable worn around the neck, usually made of silver or gold; c.f. Russian grif ("neck") or c.f. Bulgarian and Serbian grivna ("bracelet"). Later, the word was used to describe silver or gold ingots of a certain weight; c.f. Russian grivennik ("10-kopek piece"). Other smaller currency units were nogata (pelt of a large animal such as a bear or ? wolf), kuna (pelt of a small animal such as a mink sable; c.f. Croatian kuna). The smallest was veksha (squirrel pelt).

The hryvnia replaced the karbovanets during the period September 2-16, 1996, at a rate of 1 hryvnia = 100,000 karbovantsiv. The karbovanets was subject to hyperinflation in the early 1990s following the collapse of the USSR. To a large extent, the introduction of hryvnia was secretive. Hryvnia was introduced according to President's Decree dated August 26, 1996, published on August 29. During the transition period, September 2-16, both hryvnia and karbovanets were used in circulation, but merchants were required to give change only in hryvnias. All bank accounts were converted to hryvnia automatically. During the transition period, 97% of karbovanets were taken out of circulation, including 56% in the first 5 days of the currency reform. After September 16, the remaining karbovanets were allowed to be exchanged to hryvnias in banks.

The hryvnia was introduced during the period when Victor Yushchenko was the Chairman of National Bank of Ukraine. However, the first banknotes issued bore the signature of the previous National Bank Chairman, Vadym Hetman, who had resigned back in 1993. This was so because the first notes had been printed as early as 1992 by the Canadian Bank Note Company, but it had been decided to delay their circulation until the hyperinflation in Ukraine was brought under control. Initially, the foreign exchange rate was UAH 1.76 = USD 1.00. Following the Asian financial crisis in 1998 the currency devaluated to UAH 5.45 = USD 1.00. Since then, the exchange rate has been relatively stable at around 5 hryvnias for 1 US dollar.

Banknotes of the first series in denominations of 50 and 100 hryven' also existed but due to some reasons they were never introduced. Also in 1996, the 1, 50, and 100 hryvnia notes of the second series were introduced, with 1 hryvnia dated 1994. The banknotes were designed and printed by British De La Rue. Since the opening of the Mint of the National Bank of Ukraine in cooperation with De La Rue in March 1994 all banknotes has been printed in Ukraine. Later, highest denominations were added. The 200 hryvnia notes of the second series were introduced in 2001, followed by the 500 hryvnia notes of the third series in 2006. All hryvnia banknotes issued by the National Bank continue to be a legal tender. As of 2008, the banknotes of early series can rarely be found in circulation.