The 2000 UAH Banknote Will Not Affect Inflation or the Hryvnia Exchange Rate

The introduction of the 2000 hryvnia banknote will not lead to an increase in the money supply in the economy and will not affect inflation or the exchange rate of the hryvnia. The head of the NBU, Andriy Pyshny, explained that the new banknote will replace some of the old and worn-out bills, rather than being a result of additional issuance. The appearance of the 2000-hryvnia banknote will change the structure of cash, but the total volume will remain the same. Pyshny noted that the need for a new denomination arose due to the doubling of prices over seven years and the tripling of the average salary. The current economic situation in Ukraine is different from the 1990s when the country experienced hyperinflation. In 1992, prices rose by 2000%, and in 1993 by 10000%. The cause of hyperinflation then was a deep economic crisis and uncontrolled issuance. The NBU has also been accused again of using an unlicensed font on the new banknote, which was already raised in 2019.

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