On September 2, 1996, the hryvnia replaced the Ukrainian karbovanets and became the national currency of Ukraine.    

The Ukrainian karbovanets were exchanged into hryvnias between September 2 and 16, 1996 (at the exchange rate 100 000 karbovanets for 1 hryvnia). During this period, the hryvnia and the karbovanets were allowed to circulate in parallel.  After September 16, 1996, the hryvnia became Ukraine's sole legal tender.

There were 338.1 trillion karbovanets in circulation at the time when one currency was being replaced with another. The switch to the hryvnia resulted in the withdrawal of 97% of the previously-issued karbovanets from circulation (327.9 trillion karbovanets).  During this period, the National Bank of Ukraine put hryvnia banknotes worth more than UAH 3.1 billion into circulation.

Currently, the cash in circulation amounts to UAH 297.5 billion, including banknotes worth UAH 295.6 billion (2.8 billion pieces) and coins worth UAH 1.9 billion (12.0 billion pieces).

As of September 1, 2015, the total number of banknotes and coins per capita stood at 64 and 269 pieces respectively.  

“The Ukrainian banknotes and coins exist in sixteen denominations, including 9 denominations of banknotes and 7 denominations of coins, which adequately meet the demand of Ukraine’s economy for cash,” added Deputy Governor of the National Bank Yakiv Smolii.

According to him, the third generation of banknotes (of 2003 – 2007 design) and the fourth generation of banknotes (of 2014 design) account for 98% of all the banknotes in circulation. In March 2015, the 100 hryvnia bill of 2014 design with an improved design and enhanced security features, including those that can be visually verified by the public,  was put into circulation. The National Bank of Ukraine has launched the upgrading of the banknotes of 2003 – 2007 design with this banknote.

“The security features of the hryvnia banknotes are on par with those found on the banknotes of the leading world countries, – said Yakiv Smolii. – For instance, the hryvnia banknotes (high-denomination and medium-denomination banknotes) have optically variable security features for visual control that cannot be reproduced using computer and copying equipment. Similar security features are incorporated into the euro and U.S. dollar banknotes (of the latest series)”.

Presently, the level of counterfeiting is kept under control and it does not pose a threat to the national economy. Thus, in 2014, approximately three counterfeit hryvnia banknotes were detected per million genuine banknotes in circulation (in 2013 – 3.5 counterfeits, in 2012 – 4.1 counterfeits, in 2011 – 3.4 counterfeits). For comparison, in the EU countries, according to data published on the ECB's website, 48 counterfeit euro banknotes were detected per million genuine banknotes in circulation (in 2013 – 45 counterfeits, in 2012 – 35 counterfeits, in 2011 – 46 counterfeits).

“Throughout the past 19 years, the National Bank of Ukraine has been involved in continuous efforts to improve design and security features of hryvnia banknotes.  The period since the introduction of the national currency has witnessed the complicated political and economic developments. However, under current circumstances, the National Bank of Ukraine, as before, is ready to provide the economy with banknotes and coins in the denominations required,” stressed Deputy Governor of the National Bank of Ukraine Yakiv Smolii.

For reference

Back in July 1990, Ukraine proclaimed its intention to have its own currency as an indispensable attribute of its independence in the Declaration of State Sovereignty of Ukraine.

In 1991, in accordance with the Act of Proclamation of Independence of Ukraine,   the Presidium of the Verkhovna Rada of Ukraine adopted Resolutions On Approval of Names and  Attributes of the Monetary Unit of Ukraine (10 December 1991) and On the Small Coin of Ukraine (2 March 1992), which established   that  the hryvnia shall be the monetary unit of Ukraine and its hundredth fraction shall be kopiyka.