By National Bank of Ukraine ……
The National Bank of Ukraine, in accordance with the policy of optimizing the cash circulation of Ukraine, presents new circulating coins with a nominal value of 1, 2, 5 and 10 Ukrainian Hryvni (UAH).
These coins will eventually replace the notes of the respective denominations that are currently in circulation.
Putting the new coins into circulation will take two phases:
- Coins with a nominal value of UAH 1 and 2 will be put into circulation April 27, 2018.
- Coins with a face value of 5 and 10 hryvni will be put into circulation in 2019-2020 (the exact date will be reported by the National Bank).
Ukrainians will be able to use at the same time both new coins and banknotes of the respective denominations for an unlimited period of time (until the coins gradually replace the banknotes in circulation). That is, the paper money of 1, 2, 5, and 10 hryvnia will be in circulation in parallel with the metal, up to the last paper hryvnia.
The National Bank will not withdraw from circulation banknotes of denominations 1, 2, 5 and 10 UAH, but it will stop printing them.
Causes and Benefits
“The National Bank of Ukraine is responsible for issuing currency and organizes cash flow. This is a provision of the Law on the National Bank. Part of this task is to optimize cash flow, aimed at increasing convenience and reducing public spending for its implementation,” said Chairman of the National Bank of Ukraine Yakov Smolij.
Smolij explained that the replacement of banknotes on a coin would enable an optimal balance between the quality and the number of banknotes and coins in circulation that would meet the current needs of the state and the economy, as well as world experience.
“In international practice, nominal rows have an average of 12 denominations of money. And we must strive for this.”
Smolij also noted that about one billion hryvnias could save the state such replacement, taking into account the term of service of coins. The lifetime of coins is much higher than the lifetime of banknotes. Coins are in circulation for about 20 years, and banknotes denominated in 1, 2, 5 and 10 hryvnias may be in circulation for a short period of time (on average about one year).
“This decision is stimulated by us by the development of cashless payments, the change in the purchasing power of the hryvnia over the past 20 years, and changes in consumer behavior. The development of cashless settlements leads to a decrease in the number of nominal values in the nominal series of countries of the world, and Ukraine is no exception. Using payment cards over the last five years has increased more than threefold – to 39% at the beginning of 2018 (12% – at the beginning of 2013),” he said.
Experience has shown that such substitution occurs gradually, so consumers do not experience any inconvenience. In general, due to physical wear and tear of hryvnia notes, the National Bank withdraws around 800 million pieces of banknotes of all denominations each year, almost half of which (more than 40%) are banknotes of low denominations of 1 to 10 hryvnias.
In addition, the replacement of low-denomination banknotes on the coin will bring Ukraine closer to the practice of the European Union, where there are coins denominated in 1 and 2 euros.
Such a replacement at one time has been successfully carried out by different countries; for example: Hungary, Czech Republic, Denmark, Japan, Canada, Great Britain, and Australia.
Technical Specifications and Designs
Victor Zayvenko, Director of the National Bank of Ukraine’s money circulation department, informed participants about the technical characteristics and design of new circulating coins.
“The new circulating coins will have a silver color, they will be small, light and easy to calculate,” he said. “Working on their design, we decided to be consistent and to preserve the portraits of prominent Ukrainian personalities depicted on the respective banknotes. On the reverse of the coin with a nominal value of 1, the hryvnia depicts a portrait of Prince Volodymyr the Great. On the 2 hryvni – Prince Yaroslav the Wise. On the 5 hryvni – hetman Bohdan Khmelnytsky. And on the 10 hryvni – hetman Ivan Mazepa.”
The obverse of all coins depicts the small Emblem of Ukraine (trident), face value, the name of the issuing country (Ukraine) in the frame of the Old Russian ornament.
Victor Zayvenko added that the new coins will differ significantly in color and size from coins of other denominations, which will help the population to easily determine the denomination.
He also noted that among the elements of the protection of the coin, which should be used in visual and tactile control of its authenticity – the design of the obverse and reverse, the design of the group (the corresponding type of riffling) and small elements of images that are difficult to reproduce in artisanal conditions.
During the automated transfer of coins on special equipment for their identification technical specifications – size and weight, as well as the so-called electromagnetic signature – are an electronic signal characteristic of a particular material.
Information with a detailed description of new circulating coins will be posted on the official website of the National Bank of Ukraine on March 26 this year.