The National Bank of Ukraine will officially discontinue printing UAH 1, UAH 2, UAH 5, UAH 10 banknotes. These notes would continue to be circulated along with coins of the same denomination until they last. The notes would not be withdrawn but the printing would be terminated.
These notes would be gradually replaced by coins of the same denomination just like EU member states which mint and circulate EUR 1 and EUR 2 coins. Officials believe that this decision would save UAH 1 billion since coins are much more durable than banknotes. Coins have a life of 20 years while banknotes last for an average of 1 year. The decision would also be beneficial for promoting non-cash payments. Experts have suggested that the number of non-cash payments has tripled over the last five years.
Officials also stated that 5 million pieces of UAH 1 and UAH 2 coins will be released on 27th April 2018 while UAH 5 and 10 UAH coins will be released later. Worn-out and damaged banknotes of the same denominations will be withdrawn from the market. Officials also clarified that this decision will not have any effect on inflation.
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