Ukraine's Currency
The Hryvnya And Kopiyok
100 Kopiyoks = 1 Hryvnya

Above is a sample of Ukraine's currency, the Hryvnya (abbreviation: UAH). Bills come in denominations of 1, 2, 5, 10, 20, 50, 100, and 200 Hryvnyas (higher values exist but are impractical as cash money), and coins exist in denominations of 1, 2, 5, 10, 20, and 50 Kopiyoks, as well as 1 Hryvnya. 

Bills show historical figures on the front and famous buildings on the back. In late 2004 new bills were emitted, causing a bit of confusion among both natives and foreigners.

Ukraine's currency has been enviably stable the past five years and is tied to the dollar. There has been discussion of tying the Hryvnya to a basket of currencies. The current exchange rate hovers around 5.3 Hryvnyas to 1 US dollar or 6.9 Hryvnyas to 1 euro (use an up-to-date currency converter from www.oanda.com ).

Dollars and, increasingly, euros are seen all over. It is the common view that dollars are for savings stashed around the house and for big purchases, while Hryvnyas are kept around for day-to-day expenses. Even though inflation has been low for five years, Ukrainians are still mistrustful of their monetary system after banks collapsed in the early 90s and everyone lost their savings. Many people still prefer to stash dollars in hiding places in their apartment rather than deposit them in a bank, even when the savings rate is over 10%.

Exchanging Money In Ukraine

Because of the amount of US dollars and euros in circulation in Ukraine, exchange booths can be found all over any busy section of town. Rates are generally as good or better than in banks, and the service is quicker. Take note of the different exchange rates offered; beware of things like a faded "0" slipped between digits on exchange rate signs in touristy areas. No documents are necessary to exchange money at exchange booths, but passports are required in many banks, where the procedure can take a bit longer. Count the money at the window in plain sight of the money changer before walking away. More central areas tend to have better exchange rates unless their main clients are tourists. If you enter Ukraine through Kyiv's Boryspil airport, bring some smaller dollar or euro bills if you will need to pay for a taxi; the exchange point in the airport has poor exchange rates.

Counterfeit Money

No joke — counterfeit Hryvnyas are a problem in Ukraine. This is why cashiers will often hold larger bills up to a light or pass them under a scanner. They will sometimes do the same with US dollars. However, the counterfeit Hryvnya bills I have seen were easily distinguishable by their thin paper instead of the thicker, more rigid real bills. They had been given to a foreigner by a street vendor. I have only heard of one such case so far.

Attention!

Only bring crisp, whole, unmarked bills to Ukraine, as others may be refused or exchanged at a discount rate (typically minus 10%). Travelers checks seem to be less practical than cash since they are cashed with a greater commission and only certain banks cash them. These banks may have limited hours for cashing travelers checks. ATM cards are highly practical since there are now ATM machines in every town that work around the clock and you can get local cash immediately. Credit cards are accepted in expensive restaurants, hotels, and boutiques, and increasingly in large cash&carry stores. We have heard stories of credit card fraud in Ukraine. Be discreet with your cash. Foreigners often attract undesired attention to their money by clumsily leafing through wads of cash in search of the right bill. Notice how discreet Ukrainians are with their cash.

- Read here about ways to avoid pick pocketing and handle your documents wisely

How Much Do Things Cost In Ukraine?

To give you an idea of the cost of everyday items in Ukraine, here is a list of approximate prices of things in Kyiv in US dollars (as of April 2008). Prices have been rising in the past few years and are gradually approaching western levels, and in some cases passing them. Some things that are traditionally inexpensive in the West (bowling, public tennis courts, monthly pass to a trendy gym) can be significantly more expensive in Ukraine, as they are often considered "elite."

Rent of one-bedroom apartment (not directly in center) — $500-800/mo.
10-hour train ride halfway across Ukraine (there and back) — $12-40
15-minute taxi ride — $7.00
1 hour at tennis courts — $10.00
1 hour of table tennis at Hidropark island — $1.40
Admission to trendy night club: — $6-30
Admission to concert of classical music — $5-20
Decent umbrella — $8-25
Average-sized novel — $4-8
Unlicensed CD — $4-8
Meal at McDonald’s — $4-7
Meal at cafeteria-style restaurant “Domashnya Kukhnya” — $4-8
Cup of tea in classy cafe — $1-4
Hot dog on Khreschatik — $0.75
Loaf of bread — $0.30
Typical sum given to beggars — $0.10

If you're paying significantly more than this for something, make sure you know why!