Ukrainian karbovanets

Infobox Currency
currency_name_in_local = український карбованець uk icon
image_1 = 1_karbowaniec_front.jpg
image_title_1 = 1 karbovanets
image_2 = 1,000,000_Karbovantsiv_(1995_obverse).jpg
image_title_2 = 1,000,000 karbovantsiv
iso_code = UAK
using_countries = flagicon|Ukraine|1918 Ukrainian People's Republic (1st)
flagicon|Germany|Nazi Reichskommissariat Ukraine (2nd)
flag|Ukraine (3rd)
subunit_ratio_1 = 1/100
subunit_name_1 = kopiyka (копійка)
plural = karbovantsi (nom. pl.), karbovantsiv (gen. pl.)
plural_subunit_1 = kopiyky (nom. pl.), kopiyok (gen. pl.)
used_coins =
used_banknotes = 1, 3, 5, 10, 25, 50, 100, 200, 500, 1000, 2000, 5000, 10 000, 20 000, 50 000, 100 000, 200 000, 500 000, 1 000 000 karbovantsiv
issuing_authority = National Bank of Ukraine
issuing_authority_website = www.bank.gov.ua
obsolete_notice = Y

The karbovanets ( _uk. карбованець, "karbovanets’", plural: карбованці, "karbovantsi" for 2–4, or карбованців, "karbovantsiv" for 5 or more) has been a distinct unit of currency in Ukraine during three separate periods. The name is also used in the Ukrainian language for the ruble.

History

First karbovanets, 1917-1920

Bank-notes of the Ukrainian People's Republic

(17.03.1917 - 29.04.1918)
On March 1917 in Kyiv some political Parties formed the Central Rada which proclaimed on November 20, 1917 the foundation of the Ukrainian People's Republic.

And by just December 19 of the same year, a temporary law about the issue of state banknotes by the UPR was adopted. According to this law: "Bank-notes must be issued in karbovanets" ( _uk. Карбованець). Each karbovanets contains 17.424 parts of pure gold and is divided into 2 hrivnas _uk. Гривня or 200 shahs ( _uk. Шаг). Etymology of the name "karbovanets" is debatable: by one supposition it originated in the Ukraine from the ancient primitive way to carve ("karbuvaty", _uk. Карбувати) numbers of calculations on a rod, and by another supposition -from the carving (incision) on a rim of a metal rouble.

On January 5, 1918 the first Ukrainian bank-note with a value of 100 karbovanets was issued. There is an interesting detail: the trident depicted on the bank-note was proclaimed as a National Emblem of the UPR only 54 days after its appearing on the bank-note, on March 1, 1918. On all issued bank-notes was stated only one series - "AД" and only one number - 185. Combined with the use of ordinary paper (without water-marks) for printing of this bank-note, this led to the appearance of a great number of counterfeit bank-notes in circulation.

On September 20, 1918, the Central Rada proclaimed the issue of bank-notes of the State Treasure in denominations of 5, 10, 25, and 50 karbovanets, to be valid until March 1, 1924. On April 6, the population of Kiev first saw 25-karbovanets bank-notes, and 50 karbovanets bank-notes later appeared, but 5- and 10-karbovanets bank-notes were not released. Primarily this series of bank-notes was issued without designation of series and number. In subsequent issues, the series indicated the place of printing: AK (Kyiv) and AO (Odesa).

After occupation of Odesa by military units of Denikin's Army in spring, 1919, the printing house of Odesa continued printing bank-notes of 50 karbovanets. The Ukrainian Government was indignant and proclaimed money issued by the Denikinists to be false (series AO, numbers 210 and above).

It is necessary to mention one more detail of the 50-karbovanets issue. In 1920, the Soviet Government of Ukraine printed some dozens of millions of bank-notes for temporary use by Glavrevkom (Head Revolutionary Committee) in the Western Ukraine. This issue of series AO had numbers from 236 to 250.

The next release by the Central Rada was issued on April 19, 1918 and included denominations of 10, 20, 30, 40 and 50 shahs. The term "shah" is borrowed by the Central Rada from the ancient name of small coins (change) from as long ago as the 16th century. Shahs were printed in Kyiv in sheets of 100, perforated in order to simplify tearing off separate bank-notes. "Shahs" were in circulation until March 1919 when they were abolished by the Soviets. There are many existing bank-notes of this value.

Bank-notes of the Ukrainian State Government

(29.04.1918-14.11.1918)
The Congress of Free Hubb'andmen on April 29, 1918 (with the great support of Austrian-German occupants), elected tsarist general P.P.Skoropadsky as Hetman of the Ukraine. He proclaimed the overthrow of the Central Rada Government and the foundation of the Ukrainian State.

In Skoropadsky's time, the so-called "paper hryvnias" were introduced in commerce. They were ordered by the Central Rada from Germany.

On August 5, 1918, the first bank-note which appeared in commerce was the 3.6% state-bond with the name "Bank-note of the State Treasure". State-bonds were printed with 8 coupons, 4 coupons on each side. Primarily they were to be issued for the purpose of internal loans. But the general lack of circulating banknotes led to state-bonds and even separate coupons being used as paper money.

On October 17, 1918 Hetman's government received from Germany another supply of bank-notes with values of 2, 10, and 100 hryvnias, as ordered by the Central Rada. A bit later, bank-notes of 1000 and 2000 hrivnias were received. They were needed by Hetman's Government due to exaggerated inflation in the Ukraine. They bore the abbreviation of the Ukrainian State(УД, _uk. Українська Держава), an official name of the Ukraine in Hetman's time.These hryvnias were issued on October 17, 1918, 59 days before Hetman's overthrow.

Bank-notes of the Ukrainian Directorate

(14.11.1918 - 1920, June)
The defeat of Germany and Austria-Hungary in World War I resulted also in the break-up of the Ukraine's occupation regime (Hetman Skoropadsky's government). On the night of November 14, 1918, in Bila Tserkva, the Government of the Ukrainian Directorate was formed with V.K.Vynnychenko, S.V.Petlyura and others at its head. Within a month, military forces of the Directorate occupied Kyiv. On January 16, 1919 the Government of the Directorate declared war on Soviet Russia. This action required issuing enormous sums of money.

In Kyiv, the Directorate used reserves of bank-notes which were issued previously by the Central Rada's governments.

The military campaign of the Directorate turned out to be unsuccessful, and the offensive of the Red Army forced the Directorate to leave Kyiv and to settle for some time in Vinnytsia (February 5, 1919). There the Directorate used 3.6% State bonds for their purchasing power. Under the pressure of Soviet forces, the Directorate retreated still farther to Ternopil, and then Stanislav (now Ivano-Frankivsk) by the end of February, 1919. Beginning in March, 1919, one of the most unsuccessful series of bank-notes (5 hryvnias) was issued. Compiled from different elements of earlier Ukrainian banknotes, 5-hryvnia bank-notes were hastily printed on grey paper and contained an error in their text: гривна instead of гривень. Some bank-notes with such misprints entered circulation. The next bastion for the embattled Directorate was Kamanets-Podilsk, where it held out for almost a year and issued a few more bank-notes.

First, in August 1919, banknotes were printed with the value of 100, 250, and 1000 karbovanets. For printing of these bank-notes, they used clichés (slugs of type) that had been prepared by the Hetman's government.

One of the best bank-notes among all Ukrainian paper-money is a bank-note of 1000 karbovanets. This bank-note was issued in Kyiv and entered circulation on November 13, 1918. Printing was continued by the Directorate government in October 1919 at Kamyanets'-Podilsk, and in 1920 at Warsaw. The last issue is unknown.

A bit later, lower denomination notes - 10 karbovanets (August 1919) and 25 karbovanets (October 1919) were put into use. The design of the 10 karbovanets (tank-note) was prepared in Hetman's period and their obverse had the large letters УД which designated the Ukrainian state ( _uk. Українська Держава).

The last bank-notes of the Directorate were prepared in Austria. The series contained bank-notes of 50 and 1000 hryvnias. But they were never issued (only some specimen copies are known). On November 20, 1920, the Directorial Government was disbanded by S.V. Petlyura's edict and its provision of currency ended.

Bank-notes of the Ukrainian SSR

(1919-1920)
At the beginning of 1919 in Kharkiv the government of the Soviet Ukraine was formed. It represented Soviet Russia in its war against the Directorate. By Lenin's direction Russia financed the Ukrainian Soviet government. However, a period of unprecedented inflation was triggered by the Civil War and resulted in a sharp deficit of circulating money, especially petty bank-notes.

The People's Commissar (narcom) of Finance of the USSR, with the mutual consent of the RSFSR government, decided to use the 10 karbovanets bank-notes of the Directorate. This note's cliché and artwork (without series and numbers) were captured by the Red Army on February 5, 1919. during the "liberation" of Kyiv from the Petlyurian troops. The Soviet bank-note differed from the Directorate's in paper, ink, water-marks, and the location of their series and numbers.

One more bank-note of 50 karbovanets with Soviet symbolics was printed. On June 1, 1919, the Soviet Ukraine united with the Soviet governments of Russia, Lithuania, Latvia, and Belorus in a common revolutionary front, and only one monetary unit was legitimized - the rouble of the USSR. The necessity of printing separate bank-notes was gone, and the 50-karbovanets bank-note is known only by some specimen copies.

econd karbovanets, 1942-1945

During the Nazi occupation of Ukraine in World War II, the German occupying government (Reichskommissariat Ukraine) issued banknotes denominated in karbovanets ("karbowanez" in German). The karbovanets replaced the Soviet ruble at par and was in circulation between 1942 and 1945. It was pegged to the Reichsmark at a rate of 10 karbovantsiv = 1 Reichsmark.

Third karbovanets, 1992-1996

In November of 1990, with the collapse of the Soviet planned economy, the Ukrainian SSR introduced one-time coupons, which were distributed to Ukrainian residents. The coupons were needed in addition to Soviet rubles in order to buy groceries and living essentials. On January 10, 1992Fact|date=April 2008, the karbovanets replaced the Soviet ruble at par, with the ISO 4217 code being UAK.

The karbovanets, which suffered from very high inflation, was replaced by the hryvnia in 1996, at a rate of 100,000 karbovantsi = 1 hryvnia. When the hryvnia was introduced in 1996, a 15 day period was in effect from September 2-16, 1996, during which both the karbovanets and hryvnia were in circulation. The use of the karbovanets for all kinds of payments stopped completely after September 1996 and the only accepted currency after was the hryvnia.

Banknotes

First karbovanets

In 1917, the Central Rada of the Ukrainian People's Republic introduced 100 karbovantsiv notes. These were followed in 1918 by State Treasury notes for 25 and 50 karbovantsiv. That year also saw the issue of postage stamp currency denominated in shah and various bonds, together with state credit notes in denominations of 2, 10, 100, 500, 1000 and 2000 hryven. The Directorate issued notes for 100, 250 and 100 karbovanets in 1918, followed by 10 and 25 karbovanets in 1919. State notes for 5, 50 and 1000 hryven were issued in 1920.

econd karbovanets

Banknotes were introduced in June, 1942 in denominations of 1, 5, 10, 20, 50, 100, 200 and 500 karbovanets. The banknotes were in dark colour, carrying nearly all inscriptions in German, and a warning in both German and Ukrainian stating "falsification of banknotes is punished by imprisoning". The obverse of the notes all featured a portrait, including children, a peasant, a miner, a seaman and a chemist. The Nazi Reichsadler also appeared.

Third karbovanets

In 1991, notes were introduced in denominations of 1, 3, 5, 10, 25, 50, and 100 karbovanets. All 1991 banknotes were of the same design, picturing Lybid from the monument of the founders of Kiev on the obverse, and the Sophia Cathedral on reverse. The banknotes did not carry individual serial numbers or signatures. In 1992, banknotes for 100, 200, 500, 1000 karbovanets were issued, which carried serial numbers and were better protected to counterfeiting.

In 1993, banknotes for 2000 and 5000 karbovanets were issued. Having similar design as 1992 banknotes, they were the first to carry the Coat of arms of Ukraine. In the same year, notes for 10,000, 20,000, 50,000, 100,000 karbovanets were also introduced into circulation, which were bigger in size and pictured the Volodymyr Monument on the obverse and the Kiev Opera on reverse. Subsequently, banknotes for 200,000 and 500,000 karbovanets were introduced in 1994, followed by 1,000,000 karbovanets banknote in 1995, which pictured Taras Shevchenko Monument in Kiev.

ee also

*Ukrainian hryvnia, the national currency of Ukraine since 1996
*Ukrainian shah, historical currency
*Economy of Ukraine

External links

Standard numismatics external links
world_coin_gallery_1_url = Ukraine
world_coin_gallery_1_name = Ukraine
banknote_world_1_url = ukraine
banknote_world_1_name = Ukraine
dollarization_1_url =
dollarization_1_name =
gfd_1_url = Ukraine
gfd_1_name = Ukraine
gfd_data_1_url =
gfd_data_1_name =
show_gfd_excel = Y
* Chernoivanenko, Vitaliy. History of paper money in Ukraine (1917-1920) in "Zerkalo Nedeli", September 22-28, 2001. Available in [http://www.zerkalo-nedeli.com/nn/show/361/32303/ Russian] and [http://www.zn.kiev.ua/nn/show/361/32303/ Ukrainian]
* History of Ukrainian money in "Zerkalo Nedeli", September 2-8, 2006. Available in [http://www.zerkalo-nedeli.com/nn/show/612/54364 Russian] and [http://www.zn.kiev.ua/nn/show/612/54364/ Ukrainian]
* [http://www.bank.gov.ua/Engl/Bank_coin/histor_grn.htm History of Hryvnia] on National Bank of Ukraine website