The 4000 UAH Banknote Would Also Be Useful - What Authorities and Experts Say About the Introduction of the 2000 UAH Note

On July 10, 2026, the National Bank introduced a new banknote with a denomination of 2000 UAH. Such actions usually indicate accelerating inflation and possibly expectations of future inflation. Delo.ua explains why this decision was made and whether there could be higher denomination banknotes in the near future.

Four Reasons for Introducing the New Banknote

Cash transactions have largely become a thing of the past—currently, 96% of all payment card transactions are online payments. However, there are several reasons for introducing the 2000 UAH banknote, notes the NBU:

• The last time a new banknote was introduced was seven years ago, in 2019. At that time, the volume of cash in circulation was around 390 billion UAH. Now, it exceeds 970 billion UAH.

• The share of 1000 UAH banknotes in total cash has already surpassed 55%.

• The price level, according to the inflation index, has doubled. Meanwhile, the average monthly salary reached nearly 31,000 UAH in May 2026, which is three times more than in 2019.

• After the introduction of the 1000 UAH banknote, it was sufficient to have 10 banknotes of the highest denomination to receive an average monthly salary in cash. In 2026, more than 30 banknotes of 1000 UAH are needed for the same purpose.

"Thus, the decision regarding the 2000 UAH banknote is based on more than one indicator," says NBU head Andriy Pyshnyy, "it is the result of a combination of factors that have created an objective need to make cash circulation more efficient.

No Grounds for High Inflation

The older generation remembers coupon rubles, a temporary national currency that existed from 1992 to 1996. Due to hyperinflation at that time, the government constantly introduced new denominations—both 100,000 and even 1 million. However, there are no grounds for such high inflation now, as foreign exchange reserves are consistently high, the balance of payments deficit, considering partner assistance, is not critical, and the banking system is stable.

"Despite the ongoing large-scale war for the fifth year, Ukraine maintains macro-financial stability," notes Daniil Hetmantsev, chairman of the Verkhovna Rada Committee on Finance, Taxation, and Customs Policy.

There is nothing unusual in the NBU's decision regarding the new banknote. "Today we have an exchange rate of 44 UAH per dollar. Accordingly, for money to fully perform its function in circulation, higher denominations are needed. Therefore, the introduction of the 2000 UAH banknote is a completely natural step. I would even say that a denomination of 4000 UAH would not be out of place now.

Over these seven years, the accumulated level of inflation in Ukraine has reached 84%. In simpler terms, the consumer basket that cost 100 UAH in October 2019 now costs 184 UAH in July 2026, he adds.

At the same time, the emergence of the 2000 UAH banknote is largely explained by the devaluation of the hryvnia. In 2019, when the NBU introduced the 1000 UAH banknote, it was equivalent to about $40 at the then exchange rate. Today, 2000 UAH is about $45, which means that the new highest denomination effectively has the same purchasing power as the 1000 UAH banknote had seven years ago.

How Inflation Affects Purchasing Power

Since the beginning of the year, prices in Ukraine have already risen by more than 5.5%. An expert suggested that if this trend continues, annual inflation could reach around 10%. At such an inflation level, money gradually loses its purchasing power: over ten years, it will decrease by more than half, while prices will more than double.

Vladimir Dubrovsky notes that inflation is a natural process for any economy, and the central bank's task is not to eliminate it completely but to keep it at a moderate level. At the same time, it is inflation and the gradual devaluation of money that explain why the NBU is gradually withdrawing small denominations and replacing paper banknotes with coins.

"A 10 UAH banknote today is less than 25 cents. It is quite natural to replace it with a coin, as small money has a high turnover rate, and paper banknotes wear out quickly because of this. Coins are significantly more practical and durable in this case," says Dubrovsky.

According to the economist, the next banknote to be replaced by a coin could be the 20 UAH note. As for the 50 UAH note, it is too early to talk about that.

How the NBU Changed Cash Circulation

In recent years, the NBU has been systematically updating the structure of cash circulation. In October 2019, the regulator introduced the 1000 UAH banknote and finally withdrew coins of 1, 2, and 5 kopecks from circulation. In 2025, the phased withdrawal of 10 kopeck coins began, and in March 2026, paper banknotes of 1, 2, 5, and 10 UAH. It is already known that the introduction of the new 2000 UAH banknote is scheduled for September 4.

In 2020-2021, inflation in Ukraine accelerated from 5% to 10%, and then, as a result of the full-scale war, fuel shortages, and the devaluation of the hryvnia, it reached 26.6%. At the same time, the NBU gradually updated the structure of cash circulation, changing the nominal series of banknotes and coins.

Let us remind you that on March 2, the National Bank gradually withdrew banknotes of 1, 2, 5, and 10 UAH from circulation, replacing them with corresponding coins.

This decision was explained by the longer lifespan of coins: while paper banknotes of small denominations circulate for an average of about 2.5 years, coins can be used for 20-25 years, significantly reducing the costs of their production and replacement.