UAH - what is this currency? National currency of Ukraine

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

1996 - the year Ukraine received its own currency, the name of which is hryvnia (UAH).

Introduction background

Declaration of sovereignty of Ukraine in 1990 and declaration of independence in 1991, the collapse of the Soviet Union - a chain of events followed by the formation of a new state.

This meant that it was necessary to completely change the legislative, executive, judicial branches of power, to introduce symbols of statehood: the anthem, flag, coat of arms. One of the most important elements of the formation was also the speedy transition to its own currency. But it was not possible to quickly implement grandiose plans.

Until 1992, Soviet rubles were in circulation on the territory of Ukraine. But it was impossible to buy goods only with their help (especially when purchasing scarce goods). In addition to them, special cutting coupons should have been attached. Some of these products already had a watermark protection system.

Difficulties

January of the New Year, 1992, gave Ukrainians a prototype of their own currency - temporary coupons, also called coupon-karbovanets. They were planned to be used no more than a year, but the implementation of a good idea dragged on for many months.

In the early nineties on the territory of Ukrainethere was no equipment capable of printing such a complex order as the national currency. The solution was found by entering into agreements with the mints of Canada and France.

Valuable cargo was transported to Kyiv by planes and ships. The transport was accompanied by the best employees of the Alpha Special Forces Unit.

Features

The letter code is UAH. What is this currency and what are its prospects for the future? The experts of that time found it difficult to answer.

UAH - what kind of currency was then known only to a narrow circle of people. The currency symbol was selected during a special competition. Two parallel lines mean stability, they are widely used by the National Banks of the countries of the world when printing national currencies, in particular, the European Union and Japan.

Official reduction - UAH. All other options like UAH, GVN. and gr. considered unacceptable for use. It is possible to use separately the adopted letter abbreviation UAH. What kind of currency is today known far beyond the borders of Ukraine.

Issuance

Despite the fact that the first batches of new banknotes arrived at the warehouses near Kyiv in 1992, the money was released into free circulation in 1996 by decree of the President of Ukraine Leonid Kuchma of the twenty-fifth of August. Already in September, the exchange of karbovans began. The rate was one hundred thousand old money to one new hryvnia.

Ukrainian people remember this period with long queues at the doors of banks andsavings banks.

Formally, the exchange continued until 1998. But a very large number of the population could not turn in their savings on time, and they burned out.

The exchange rate of the UAH against the ruble in September 1996 was one to three, against the dollar - a little less than two Ukrainian units. This course lasted until the crisis of 1998.

In 2004, about five hryvnias were given for one dollar, in 2008 - eight. At the moment, the exchange rate fluctuates around twenty-two hryvnia for one US dollar.

In general, we can say that the Ukrainian currency is not very profitable for investment due to strong devaluation risks.

Conclusion

Now you know what the abbreviation UAH is, what kind of currency it is. Which, by the way, has been repeatedly recognized as the most beautiful in the world.

Next - 2016, the national Ukrainian currency will celebrate its twentieth anniversary.

In the early days of her birth, she helped fight the chaos of hyperinflation that reigned in Ukraine, and had good prospects for serious strengthening.

But at the moment is in a rather precarious position. And the further course depends solely on the competent steps taken by the government of Ukraine to develop the economy and the right choice of allies.