The NBU Explained Why it Decided to Introduce 2000 Hryvnia Banknotes into Circulation rRight Now

The National Bank of Ukraine explained why it decided to introduce a new denomination of the hryvnia into circulation at this time.

The regulator emphasized that the banknote series of the national currency for central banks of any country is not something static.

“The economy changes. Incomes, prices, the volume of cash in circulation, as well as the behavior of the population change. And the banknote series of the national currency must correspond to these changes.

Therefore, when introducing new banknote denominations into circulation, central banks primarily take economic factors into account,” the NBU stated.

They recalled that the 1,000 hryvnia banknote was introduced into circulation in 2019, almost 7 years ago. Since then, many events have occurred in Ukraine that affected the economy — including the coronavirus crisis and the start of the full-scale invasion.

Just as in 2019 economic prerequisites led to the introduction of the 1,000 hryvnia banknote, in 2026 they formed a justified need to introduce the 2,000 hryvnia banknote into circulation, the National Bank added.

“Firstly, since the introduction of the 1,000 hryvnia banknote seven years ago, the average monthly salary in Ukraine has tripled, and the price level based on the inflation index has doubled. This created a need for a larger amount of cash, because if after the introduction of the 1,000 hryvnia banknote it was enough to have 10 banknotes of the highest denomination to receive the average monthly salary, in 2026 more than 30 banknotes of 1,000 hryvnias will be needed for this.

Secondly, the volume of cash in circulation has more than doubled — from almost 390 billion hryvnias in 2019 to over 970 billion hryvnias as of July 1, 2026. The increased demand for cash was caused, in particular, by wartime needs. The stability of the financial system is ensured not only by the availability and continuous operation of cashless infrastructure but also by convenient access to protected cash. For example, when residents of frontline communities have the opportunity to make payments even where there is no stable connection.

Thirdly, there have been changes in the structure of cash in circulation. Currently, the share of 1,000 hryvnia banknotes by amount has already exceeded 55%. In global central banking practice, this indicates the need to introduce a higher denomination banknote.

So, it is not about a single indicator, but a combination of factors that indicate the need for more efficient servicing of cash circulation,” the NBU stated.

The regulator reminded that today 96 out of 100 payment card transactions are cashless.

It is noted that the introduction of the 2,000 hryvnia banknote has a number of advantages for the state, as well as for the population and business.

“For the state — this reduces costs for logistics and servicing cash circulation. A smaller number of banknotes for the same volume of operations means lower costs for their production, transportation, collection, processing, and storage.

For banks — this reduces operational load, optimizes cash processes, lowers volumes of cash for processing, and increases the speed of cash provision.

For trade — this means more convenient customer service and less load on cashiers.

For business — simpler and faster cash settlements with customers.

For the population — convenience in using and storing funds,” the NBU emphasized.

Earlier, we reported that the National Bank of Ukraine announced the expansion of the hryvnia denomination range — a new 2,000 hryvnia banknote is being introduced into cash circulation.

The new banknote will enter circulation on September 4, 2026.

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