What is the Currency of Ukraine?

What is the currency of Ukraine?

Whether you're travelling to Eastern Europe, doing business with Ukrainian partners, or simply interested in global currencies, understanding the currency of Ukraine is essential. This article is aimed at tourists, import/export professionals, international investors, and anyone seeking clarity on how Ukraine’s currency system works. We’ll explore what the official currency is, how it operates, how it has been impacted by recent events, and offer practical guidance for using or exchanging it effectively.

What is the Ukrainian Hryvnia?

The official currency of Ukraine is the Hryvnia, abbreviated as UAH and symbolised by ₴. It is pronounced “hryv-nee-ah,” with the plural form being hryvnias. The currency was introduced in 1996, replacing the transitional Karbovanets following Ukraine’s independence from the Soviet Union.

One hryvnia is divided into 100 kopiykas, although coins have become increasingly rare in everyday use. Banknotes are far more common, issued in denominations of 1, 2, 5, 10, 20, 50, 100, 200, 500, and 1,000 hryvnias.

All currency is issued and regulated by the National Bank of Ukraine (NBU), which manages monetary policy and works to maintain the value and stability of the hryvnia.

Who uses the Hryvnia?

The hryvnia is used across the whole of Ukraine, including major cities like Kyiv, Lviv, Odesa, and Dnipro. It is the only legal tender for public and private transactions, including shopping, rent, wages, and official documents.

It’s important to note that while foreign currencies—especially the US Dollar and Euro—are sometimes used in informal transactions or online pricing, only UAH is legally valid for payments within Ukraine.

Tourists must use hryvnias for day-to-day expenses, as most shops, cafes, and transport services do not accept foreign currency.

How does the Hryvnia work?

The Ukrainian hryvnia is a floating currency, meaning its value is determined by market supply and demand rather than a fixed exchange rate. However, the National Bank of Ukraine actively intervenes in the currency market when necessary to limit volatility, particularly during times of geopolitical instability.

Due to the ongoing conflict with Russia since 2014, and especially following the full-scale invasion in 2022, the currency has faced significant downward pressure. Despite this, the NBU has taken steps to maintain economic confidence, including capital controls, fixed exchange bands, and targeted interventions.

In stable periods, the exchange rate typically fluctuates between 36 and 41 UAH to 1 US Dollar, and around 43 to 48 UAH to 1 British Pound, though this can vary widely based on political developments and global market conditions.

Benefits and risks of using the hryvnia

Benefits:

• Widely accepted for all transactions within Ukraine.

• Easy access to cash and banking services in urban areas.

• Supported by an active central bank working to maintain stability.

Risks:

• Susceptible to geopolitical shocks and inflation during times of conflict.

• Exchange rates can fluctuate significantly in short periods.

• Limited availability of the currency outside Ukraine, making advance planning important for travellers.

Common misconceptions

One frequent misconception is that Ukraine uses the Russian rouble due to its shared Soviet history. In reality, the hryvnia has been Ukraine’s only legal currency since 1996, and its use is a key symbol of national sovereignty.

Another common misunderstanding is that credit cards are widely accepted across the country. While this is true in major cities and larger establishments, cash is still king in rural areas, public markets, and many small businesses. Always carry local currency if you’re venturing outside of tourist hubs.

Tips for managing money in Ukraine

For travellers:

• Exchange currency upon arrival at reputable banks or exchange offices (look for signs saying “Обмін валют”).

• Avoid exchanging at airports unless necessary—rates are often less favourable.

• Withdraw cash from bank-affiliated ATMs to get fair rates and reduce the risk of fraud.

• Carry small denominations, particularly when using taxis, street vendors, or local transport.

For businesses and investors:

• Monitor UAH exchange trends if working with Ukrainian clients or suppliers.

• Use USD or EUR for larger contracts where currency volatility could impact value.

• Consider currency hedging tools when working with long-term agreements to protect against devaluation.

FAQs

Can I use US Dollars or Euros in Ukraine?
Only in limited or informal situations. Most places will require payment in hryvnias.

Is it safe to withdraw money from ATMs in Ukraine?
Yes, particularly in urban areas. Stick to ATMs attached to reputable banks and avoid those in isolated or poorly lit locations.

Is the hryvnia stable?
The hryvnia has experienced periods of volatility, especially during geopolitical unrest. However, it remains functional and supported by a proactive central bank.

Can I get Ukrainian currency in the UK?
It’s rare. Most UK currency exchanges do not stock UAH. You’ll usually get a better rate and more availability once in Ukraine.

Real-life example

Imagine you’re visiting Lviv for a week. You arrive with £400 and exchange it at a local currency exchange near your hotel, receiving approximately 18,000 UAH. You use this for meals, travel, and shopping. While your hotel may accept cards, many restaurants and smaller stores prefer cash. You find having hryvnias on hand helps you avoid awkward payment issues or ATM fees.