Author Topic: Ukraine to Stop Minting Low Denomination Coins  (Read 369 times)

0 Members and 1 Guest are viewing this topic.

Offline Bimat

  • आदित्य
  • Global Moderator
  • Honorary Member
  • *****
  • Posts: 11 399
  • Mumbai, India.
Ukraine to Stop Minting Low Denomination Coins
« on: June 29, 2019, 05:00:06 PM »
NBU Decides To Introduce 1,000-hryvnia Banknote From October 25, Withdraw 1-, 2- And 5-Kopeck Coins From October

25 JUNE 2019, TUESDAY, 12:58   

The National Bank of Ukraine has decided to introduce 1,000-hryvnia banknote from October 25 and withdraw 1-, 2- and 5-kopeck coins from the market from October.

Head of the National Bank of Ukraine, Yakiv Smolii, has said this at a press-conference, Ukrainian News Agency reports.

According to him, coins of 1, 2 and 5 kopecks will no longer be means of payment in Ukraine and will be withdrawn from circulation from October 1, 2019.

Also, 25-kopeck coins will be gradually withdrawn.

From October 25, 2019, the National Bank will issue a banknote of a new high nominal value of UAH 1,000.

As a result, after completion of the process of withdrawing small coins and introducing new banknote into circulation, the value row of hryvnia will be reduced from 17 to 12 nominals.

According to him, it is precisely the row of 11-13 money values the most widely spread throughout leading countries in different parts of the world: from the United States, Canada, Great Britain to the Czech Republic, Denmark, Switzerland and Australia.

Key reasons and benefits: user-friendliness; too considerable variety of banknotes and coins leads to confusion in wallets and takes too much time when making payments.

Taking into account the growth in the level of income and prices, Ukrainians no longer actually use coins of small values, but there is a need for a banknote of higher denomination than UAH 500.

In particular, coins of 1, 2 and 5 kopecks are rarely used in payments for goods and services and almost never return from circulation in the banking system.

As Ukrainian News Agency earlier reported, in 2018, the National Bank of Ukraine disposed of 663 million of banknotes for USD 47.420 billion.

Source: Ukrainian News
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline Gusev

  • Moderator
  • Meritorious Member
  • *****
  • Posts: 889
Re: Ukraine to Stop Minting Low Denomination Coins
« Reply #1 on: June 29, 2019, 05:46:14 PM »

Taking into account the growth in the level of income and prices, Ukrainians no longer actually use coins of small values, but there is a need for a banknote of higher denomination than UAH 500.


An interesting explanation of the concept of inflation.
Officials of the National Bank of Ukraine consider Ukrainians to be idiots.
The average salary in Ukraine is 12,000 hryvnias and the majority of the country's population does not need a banknote of 1,000 hryvnias ..
"Those at the top of the mountain didn't fall there."- Marcus Washling.

Offline Pabitra

  • Honorary Member
  • *****
  • Posts: 2 347
Re: Ukraine to Stop Minting Low Denomination Coins
« Reply #2 on: June 29, 2019, 08:53:15 PM »
What about 10 Kopeck coin?

Offline FosseWay

  • Moderator
  • Honorary Member
  • *****
  • Posts: 3 306
  • Göteborg, Sverige
Re: Ukraine to Stop Minting Low Denomination Coins
« Reply #3 on: June 29, 2019, 09:35:06 PM »
What about 10 Kopeck coin?

I interpret this as being that they are following tge same approach as Sweden did in the 1980s. You can't have a 25 and a 10 but no 5 in use without requiring arithmetical acrobatics by users. Either you get rid of the 25 and keep the 10 (as Sweden did and Ukraine seems to be doing) or you ditch the 10 and smaller and keep the 25 as the smallest (as Denmark did).