Ukrainians hold a record 890 billion in cash: the reason for the increase has been named

The National Bank of Ukraine reported that there are currently 890.1 billion UAH in circulation in the country, which is 67.7 billion UAH (8.2%) more than at the beginning of the year. This increase is explained not only by seasonal factors but also by heightened uncertainty due to the war.

In the first quarter, money was actively deposited into banks, but in the second and third quarters, demand sharply rose. The main reason for this increase is the continuation of airstrikes, which can lead to prolonged power outages. Without electricity, terminals, ATMs, and online banking will not work.

According to the regulator, there are 2.6 billion banknotes and 15.1 billion coins in circulation, totaling 8.9 billion UAH. Each resident of Ukraine has an average of 63 banknotes and 191 coins.

The most popular banknote is the 500 UAH note (26.6%), while the least popular is the 50 UAH note (4.5%). As for coins, the leading coins are 1 UAH coins (4.5%), while 10 UAH coins (2.2%) have the least distribution. Starting in October, the withdrawal of 10 kopeck coins, which are no longer used in transactions, is planned, which will reduce the country's expenses for their production and maintenance.

50 kopeck coins remain popular in trade and account for 9.1% of all coins in circulation.

Cash Growth Dynamics

Over the past 9 months, 1000 UAH banknotes and 10 UAH coins particularly stand out among the growth of cash. This indicates inflationary processes and rising prices, which means Ukrainians need more money for daily purchases.

The increase in cash in circulation in Ukraine indicates a growing demand for cash due to the uncertainty of the political and economic situation in the country, as well as the population's desire to maintain financial stability in turbulent conditions.