The 2,000-hryvnia banknote will not affect inflation: the NBU explained the emergence of the new denomination

The introduction of a new 2,000-hryvnia banknote in Ukraine will not lead to an increase in inflation. The National Bank of Ukraine explained that the appearance of the new denomination is a consequence of economic changes in the country, and not the cause of price increases.

The regulator emphasizes: the banknote series must meet the real needs of the economy and take into account changes in the price level, income of citizens and the total amount of cash in circulation.

Why is a 2,000-hryvnia banknote being introduced in Ukraine

The National Bank noted that cash is necessary to service settlements in the economy. Accordingly, the structure of the banknote series should also change with changing economic conditions.

The last new denomination of the hryvnia — the 1,000-hryvnia banknote — was introduced in Ukraine seven years ago. Since then, the country has experienced the COVID-19 pandemic and a full-scale Russian invasion, which significantly affected economic indicators.

According to the State Statistics Service, during this period, the average monthly wage in Ukraine increased approximately threefold, and the general price level, according to the inflation rate, doubled.

At the same time, according to the National Bank, the volume of cash in circulation more than doubled.

It is these economic changes, according to the regulator, that created the need to expand the nominal range of the hryvnia.

The NBU assures: the new banknote will not accelerate inflation

The National Bank emphasizes that the introduction of a banknote of a larger denomination in itself does not create additional inflationary pressure.

The new denomination only reflects the changes that have already occurred in the economy, in particular, the growth of prices, incomes of the population and the volume of cash payments.

In addition, the excessive number of banknotes of smaller denominations creates inconvenience for citizens and businesses, and also increases state costs for organizing cash circulation, transportation, storage and processing of banknotes.

“The release of banknotes of a new denomination should solve this problem,” the National Bank noted.

What will happen to inflation in Ukraine

The NBU recalled that one of the main tasks of the regulator is to ensure low and stable inflation.

Currently, inflation in Ukraine is at about 7%, while the National Bank’s target is 5%.

According to the regulator’s forecasts, a certain acceleration in the rate of price growth is possible in the second half of 2026. The NBU cites an increase in business costs, in particular on energy and labor costs, among the main reasons.

At the same time, the National Bank expects that inflation will begin to slow down by the end of 2027, and in 2028 it will gradually return to the target level of 5%.

When will the 2,000 hryvnia banknote enter circulation

The National Bank of Ukraine previously announced the expansion of the nominal range of the national currency and the introduction of a new 2,000 hryvnia banknote.

The new note is due to enter cash circulation on September 4, 2026.

The NBU emphasizes that the introduction of the new denomination is intended to make cash payments more convenient and reduce the costs of servicing cash circulation. At the same time, the appearance of the 2,000 hryvnia note itself, according to the regulator, will not have an impact on the level of inflation in Ukraine.