Some media outlets have recently reported that representatives of the so-called Donetsk People's Republic are planning to organize the production of counterfeit hryvnia banknotes using the manufacturing facilities of one of the printing plants located in the city of Donetsk.

The National Bank of Ukraine claims that this merely provocative information aims to destabilize the financial system of Ukraine, derail public confidence in the national currency and jeopardize the image of the country's central bank.

We intimate that pursuant to the laws of Ukraine, the National Bank of Ukraine issues the national currency of Ukraine on a monopoly basis and organizes its circulation in cash.

Pursuant to the Law of Ukraine "On the National Bank of Ukraine", the issue and circulation of other monetary units and the use of money substitutes as payment instruments on the territory of Ukraine are prohibited. The production of counterfeit banknotes with the purpose of putting them into circulation or putting fake banknotes into circulation incurs criminal liability in accordance with the Ukrainian legislation.

As to the Ukrainian hryvnia, it has a high level of protection against counterfeiting because the National Bank of Ukraine uses cutting-edge technologies to manufacture monetary units.

The security features incorporated in banknotes allow one to detect counterfeits in the course of automated cash processing with the use of special equipment and during visual inspection of banknotes without the use of special detecting devices.

At the same time, the counterfeiting situation is kept under control and it poses no serious threat to the economy.

In 2013, there were about 3.5 pieces of counterfeits per 1 million genuine banknotes (in 2012 – 4.1 pieces of counterfeits, in 2011 – 3.4 pieces of counterfeits).

For reference: According to the data posted on the official website of the European Central Bank (www.ecb.int), in 2013, there were around 43 pieces of counterfeits per 1 million genuine euro banknotes in EU countries (in 2012 – 35 pieces of counterfeit euro banknotes, in 2011 – 46 pieces of counterfeit euro banknotes). 

Should citizens have doubts about the authenticity of banknotes, they must turn to any bank for further examination of suspected counterfeits to be carried out by the regional branches of the National Bank of Ukraine. Based on the results of this examination, which is available free of charge, clients will be reimbursed the corresponding value of hryvnia banknotes that have been recognized as genuine. Counterfeit banknotes are withdrawn from circulation and they are not eligible for reimbursement.

All the counterfeit money withdrawn from circulation is transferred to the authorized employees of the Ministry of Internal Affairs of Ukraine for further investigation.

Detailed description of all the hryvnia banknotes in circulation and their security features is available on the official website of the National Bank of Ukraine.