The proclamation of Ukrainian independence on August 24, 1991 opened the way to introduction of the full-value national currency in Ukraine.  The first specimen of Ukrainian national currency was manufactured in Canada in 1992, but was kept, under heavy guard in a secret warehouse, for several years. 

The Ukrainian Karbovanets was put into circulation in Ukraine in 1992 as the provisional currency. This very monetary unit became the victim of inflation, caused by the economic crisis of the transitional period. 

The Ukrainian President's Decree "On the Monetary Reform in Ukraine" was declared on August 25, 1996.  The monetary reform in Ukraine was carried out on September 2 -16, by the National Bank of Ukraine, in accordance with the President's Decree.  Karbovanets deposits of households were converted into Hryvnia deposits according to the exchange rate of 100,000 Karbovanets against 1 Hryvnia. 

Both Hryvnias and Karbovanets were used in cash circulation for 15 days: September 2-16, 1996,  with a gradual withdrawal of the latter.  The use of Karbovanets for all kind of payments was stopped  after September 1996 and the Hryvnia became the only legal tender of payment within Ukraine.