NBU is not going to withdraw the penny from circulation

Despite the depreciation of the hryvnia by almost 15 times since the introduction of the national currency on 2 September 1996, the national Bank of Ukraine (NBU) has no plans to withdraw from circulation the 1 and 2 cents, and the question of putting into circulation of 1000-hryvnia banknotes has not commented. This follows from the response of the NBU at the request of “UKRINFORM” with reference to the plans of the regulator on the treatment of the existing denominations of banknotes and coins.

“Optimization of the nominal number of banknotes depends on many factors such as size of population incomes, the level of consumer prices, the degree of use in circulation of the existing denominations of banknotes and coins, the level of development of cashless payments. While the above solutions are not accepted”, – noted in the NBU.

At the same time, the NBU assured that the work on the optimization of the nominal number of banknotes are carried out continuously. The regulator is carefully studying the international experience in this area, the needs of society and the economy with regard to the adequacy of certain banknotes.

Now a nominal number of banknotes of Ukraine has 16 denominations, of which nine denominations of banknotes and seven denominations of coins.

Today in circulation there are banknotes of mostly third – generation samples 2003-2007 Working on an update of the third generation of the nominal number of banknotes of the sample of 2003 – 2007 began in 2012 in the framework of the Strategic program for improving the organization of cash circulation in Ukraine for 2013-2018.

The main factor that determine the need to upgrade the banknote series is to strengthen their security. Banknotes of hryvnia samples 2003-2007 years in comparison with banknotes of samples 1992-1994, depending on denomination, have different sizes and dominant color for better recognition. With the purpose of complicating counterfeiting they introduced new security features: stained paper, light watermark element, security fibers and ribbon two-color fluorescence, a special magnetic code protective tape, improved dimensional printing individual images, which, in particular, made special signs for people with impaired vision, image, which is made of optically variable paint, etc.


  • The printing of money over the year in Ukraine costed 1.3 billion

The question of removal from circulation of 1 and 2 cents in the loss of a measure of value was raised at least twice. In 2011, the Bank recognized that the 1 and 2 pennies “are not a measure of value.” The national Bank of Ukraine also said that initiates withdrawal from circulation of coins 1 and 2 cents, however, this issue needs to be agreed with the Cabinet of Ministers of Ukraine. In addition, in early 2015, the national Bank forecast a consideration in the nearest future the question of the feasibility of using a reverse 1-2-penny coins.

The main reason to refuse coins of the smallest denomination was called that to make them spend much more than the coins are worth by themselves. In addition, these coins ceased to be the measure of value and, since 2010, in fact, not returned to the banking system. The NBU noted that, technically, to withdraw these coins from circulation is easy, but this solution is complex and you need to do the appropriate calculations with the government and the Parliament must approve this decision.