On 1 October 2013, the 50 kopiyka coins made of electroplated low-carbon steel entered into circulation in order to meet the cash circulation needs pursuant to Articles 33 – 35 of the Law of Ukraine On the National Bank of Ukraine.
Until then, the coins of 50 kopiyka denomination were struck on the planchets (coin blanks) made from an aluminum-bronze alloy.
The main rationale behind the decision to shift to new raw material for the planchets is to combine technological and economic effect, which is achieved by deploying new technology for manufacturing of planchets and coinage, and to reduce the cost of metal through the abandonment of non-ferrous materials (and their alloys) whose prices tend to rise on world commodity markets, thus pushing up the production costs of change coins.
The use of new material for manufacturing of the 50 kopiyka coins has no effect on the cash cycle of change coins and protection of change coins against counterfeiting. As of 1 September 2013, 1, 013, 023 thousand pieces of change coins, worth UAH 506, 512 thousand, were in circulation.
The coins of 50 kopiyka denomination issued in 2013 are a legal tender of Ukraine. These coins circulate in parallel with the corresponding coins issued in previous years. "The coins are being put into circulation in quantities set out in the issuance schedule. The coins issued in previous years will not be withdrawn from circulation," emphasized Mr Viktor Nesterenko.
It should be noted that prior to making the decision to replace the raw material from which the planchets (coin blanks) for these change coins are fabricated, the National Bank of Ukraine studied the relevant international experience closely. The review of modern coins carried out based on the data provided by the Coin Registration Office (Royal Mint) shows that approximately 10 alloys of copper, aluminum, nickel, and zinc are used to strike change coins. "Different types of alloys contain components in varying proportions. Pure metals such as copper or zinc are rarely used. In some countries, coins are struck on the nickel-coated copper planchets or copper-coated steel planchets," explained Director of General Department for Regulation of Cash Circulation Viktor Nesterenko. He also noted that in Poland the 10, 20, 50 groszy and 1 złoty are minted in cupro-nickel, whereas the Russian coins of 10 and 50 kopeyka denomination are made from a copper-zinc alloy. 40 countries around the world, including EU countries, the UK, Argentina and Canada have electroplated coins in circulation.