The National Bank of Ukraine presented future changes in the hryvnia banknote and coinage series aimed at further streamlining the monetary circulation of the national currency and simplifying settlements. In particular, coins with a denomination of 25 kopecks and all hryvnia banknotes of old samples, introduced into circulation before 2003, cease to be a means of payment when making payments in cash and will be withdrawn from circulation from October 1, 2020. The NBU will also more actively withdraw from circulation paper banknotes of 1 and 2 hryvnia and 1 hryvnia coins of the 1996 model, replacing them with the corresponding circulating coins of the 2018 model.

Deputy Chairman of the National Bank Aleksey Shaban announced this today during a press briefing.

“We continue to put things in order in cash circulation and bring it to world standards. The main goal of our solutions is to simplify cash payments and improve their convenience for users. We also take care of the economic feasibility and improving the quality of cash in circulation.

As a result, the banknote-coin range of the hryvnia will be reduced from 17 denominations to 12. In total, 6 denominations of coins and 6 denominations of banknotes will remain in it, which is in line with international practice, ”said the Deputy Chairman of the National Bank.

At the moment, coins with a denomination of 25 kopecks are not exchanged due to the withdrawal from circulation of coins with denominations of 1, 2 and 5 kopecks, which took place last year. Thanks to their withdrawal from circulation, this problem will be solved.

Old-style banknotes, introduced into circulation before 2003, almost no longer fulfill their function of a means of payment. Now they are about 1.8% of the total number of banknotes in circulation. Over the past three years, their volume in circulation has remained almost unchanged. That is, citizens hardly pay with them, these banknotes are not collected and are not received by banks.

The NBU noted that thanks to the proposed changes, the costs of the state and participants in cash circulation for the production, processing, transportation, storage of banknotes and coins will decrease.

As the Director of the Monetary Circulation Department of the National Bank Viktor Zaivenko noted, coins with a denomination of 25 kopecks and all old banknotes introduced into circulation before 2003 will cease to be legal tender in Ukraine in a month – from October 1, 2020.

“From this date, they will not be accepted for payments in cash for goods and services, and the National Bank will withdraw them from cash circulation. That is, from October 1, 2020, all shops, restaurants, and everyday life should stop accepting them, and the rest of such coins and banknotes must be handed over to the cash desks of Ukrainian banks by October 16 to be credited to accounts, ”he explained.

At the same time, citizens will be able, without restrictions and free of charge, to exchange coins with a denomination of 25 kopecks and old banknotes introduced into circulation before 2003 for coins and banknotes of other denominations and designs within the next three years: in all Ukrainian banks – within one year from the date of their withdrawal from circulation – until September 30, 2021 inclusive; in the NBU and authorized banks (Oschadbank, PrivatBank, Raiffeisen Bank Aval, FUIB) – within three years from the date of their withdrawal from circulation – until September 30, 2023 inclusive.

In addition, from October 1, 2020, the National Bank will more actively withdraw from circulation banknotes with a denomination of 1 and 2 hryvnia samples of 2003-2007 and circulating coins with a denomination of 1 hryvnia of the old model, made before 2018 (golden color). Once in banks, they will no longer be returned to circulation, but will be seized and transferred to the National Bank.

Unlike obsolete banknotes and coins of 25 kopecks, banknotes of 1 and 2 hryvnia samples of 2003-2007 and coins of 1 hryvnia of the old model, made before 2018, will still remain a valid legal tender. They can be calculated, they do not need to be specially exchanged. At the same time, they will gradually become less and less in circulation, and their place will be taken by the corresponding “silver” coins of 1 and 2 hryvnia denominations of the 2018 issue.

Source: NBU