Discussions about the need to introduce a 5,000 hryvnia banknote periodically flare up in the Ukrainian economic space. Against the backdrop of inflation and rising prices, the idea seems logical; however, Bohdan Slutsky, an economist from the Center for Economic Strategy, debunks this myth. According to his calculations, even if such a banknote were to appear, it would not become the most expensive in the history of the national currency.
The record for real purchasing power is still held by the 500 hryvnia banknote issued by the National Bank in 2006. At the time of its introduction, it was worth almost 100 US dollars. If this amount is recalculated taking into account the inflation of the US currency, the equivalent today is approximately 165 dollars.
The Mathematics of Devaluation
For comparison, a hypothetical 5,000 hryvnia banknote at the current dollar exchange rate would correspond to approximately 111 dollars. This means that in terms of real value, it would be significantly inferior to the "500" from 2006. To replicate the purchasing power of that legendary banknote today, the NBU would have to issue a banknote with a face value of around 7,400 hryvnias.
The economist also cited a telling example from Turkey. The largest Turkish banknote, with a face value of 200 lira, has not changed since 2009. Back then, it was worth more than 130 dollars, while now its rate has fallen to four dollars (less than 200 hryvnias). Turkish authorities have been postponing the introduction of a larger denomination for years, as this would become a visible sign of the massive devaluation of the currency. However, sooner or later, the country will be forced to take this step, as the logistics of small banknotes become economically unprofitable.
The Shadow Side of Large Denominations
The introduction of large banknotes is not just a matter of payment convenience but also a social challenge. Bohdan Slutsky emphasizes that large denominations often become tools for the shadow economy.
"Large banknotes are friends of shadowing and enemies of cashless transactions. The more money fits into one banknote, the easier it is to store, transport, and transfer large cash sums unnoticed. Therefore, the decision on new denominations is also a choice between the convenience of cash and the convenience of the shadow," noted the expert.
At the same time, the appearance of 1,000 hryvnia banknotes in 2019 and the planned 2,000 hryvnia banknote in 2026 are not considered radical steps. At the time of their introduction, they were worth around 40–45 dollars, essentially returning the largest hryvnia denomination to the dollar value that the thousand had several years ago.
Logistics and New Realities
In July, the National Bank presented a new 2,000 hryvnia banknote featuring the portrait of Vasyl Stus, which will enter circulation on September 4, 2026. This decision is dictated by the need to optimize cash circulation. In 2025, the transportation of banknotes with denominations of 200, 500, and 1,000 hryvnias amounted to hundreds of tons, creating a significant burden on logistics. The new denomination will allow for a several-fold reduction in costs for transporting and storing money.
The economist expressed hope that Ukraine will not need a 5,000 hryvnia banknote for a long time. However, he humorously noted that if such a banknote did appear, it would be worth leaving a place for Pavlo Lazarenko as a symbol of the shadow economy, while for a hypothetical 100,000 hryvnia banknote, the alternative-free choice would be Ivan Karpenko-Karyi and his play "A Hundred Thousand".
