The National Bank of Ukraine is reducing the number of banknotes in circulation by replacing small banknotes with coins and larger denominations. There is a particular reduction in two-hundred-hryvnia banknotes, as the population is actively shifting to one-thousand-hryvnia banknotes. The demand for 10 and 5-hryvnia banknotes is also significantly decreasing.
According to the central bank, the most dramatic reduction has affected two-hundred-hryvnia banknotes - their volume in circulation has decreased by a quarter (24.5%). 'This is due to the active transition of the population to one-thousand-hryvnia banknotes and the planned withdrawal of outdated banknotes,' they explain at the NBU.
The martial law has caused a change in the financial habits of Ukrainians. People prefer to keep their money in large banknotes, which leads to an increase in demand for one-thousand-hryvnia banknotes. Five-hundred-hryvnia banknotes remain the most popular, accounting for over a quarter of all money in circulation.
Among coins, the most commonly used are 10-kopiyka coins, but 50-hryvnia banknotes and 10-hryvnia coins are not in such demand among the population.
The National Bank of Ukraine is actively replacing small banknotes with coins and larger denomination banknotes due to the change in citizens' financial habits. The martial law has led to an increase in demand for one-thousand-hryvnia banknotes and has shown that five-hundred-hryvnia banknotes are the most popular among the population.