The National Bank of Ukraine will soon issue into circulation new circulating coins of UAH 1 and UAH 2 denomination.
The coins to be put into circulation on 27 April 2018 will in time replace the banknotes of respective denominations presently in circulation.
Ukrainian citizens will make payments with both new coins and banknotes of respective denominations for an unlimited period until the coins gradually replace the banknotes in circulation. Thus, paper money of UAH 1 and UAH 2 denominations will be in circulation along with the coins until the last paper hryvnia.
The NBU will not remove UAH 1 and UAH 2 banknotes from circulation, but will cease printing these banknotes and using them to replenish cash in circulation.
Similar undertakings were successfully implemented by Hungary, the Czech Republic, Denmark, Australia, the United Kingdom, Canada, Japan.
Today, the journalists have been taken on a tour of the Mint and shown how coins are minted at this manufacturing facility.
The following participants took part in the event:
- Mr Volodymyr Bahlai, Director General, the NBU Banknote Printing and Minting Works;
- Mr Volodymyr Reshynskyi, Director, the Mint of the NBU Banknote Printing and Minting Works;
- Mr Volodymyr Tyshchenko, Head of Office for Money Production and Protection, the NBU Cash Circulation Department;
- Mr Roman Chaikovskyi and Mr Volodymyr Demianenko, designers and engravers of the new circulating coins, the Mint of the NBU Banknote Printing and Minting Works.
The representatives of the Mint told about the specifications and the design of the new circulating coins of UAH 1 and UAH 2 denominations during the tour to the manufacturing facility where the coins are minted.
New circulating coins will be of silver color, small size, light-weight and easy to use for payments. The color and the size of the new coins will make them easily distinguishable from coins of other denominations to simplify the process of recognizing the denomination for the population.
According to Mr Volodymyr Bahlai, Director General of the NBU Banknote Printing and Minting Works, the new coins of UAH 1 and UAH 2 denominations are made of electroplated steel. “This enables us to lower the cost of producing the coins. As of today, the production cost of the new circulating coins of UAH 1 and UAH 2 denominations is lower than their face value,” - he said.
Mr Volodymyr Reshynskyi, Director of the Mint of the NBU Banknote Printing and Minting Works, shared the Mint’s plans of minting about 140 million of UAH 1 coins and 145 million of UAH 2 coins this year.
He added that replacement of UAH 1 and UAH 2 banknotes will be done gradually. Coins will in time replace the worn out, damaged and unfit for circulation banknotes.
The coins’ design has “inherited” the portraits of the prominent Ukrainian personalities who are depicted on the respective banknotes. The reverse of UAH 1 coin depicts the Grand Prince of Kyiv, Volodymyr the Great; of UAH 2 - the Grand Prince of Kyiv, Yaroslav the Wise.
The obverse of all coins will portray the Ukraine’s small coat of arms (the trident), denomination, name of the issuing country (Ukraine) framed by an ancient Rus ornament.
Security features of the coins intended for visual and sensory control of their authenticity include design of the obverse and the reverse, edge (respective grooving) and fine elements of the images that cannot be duplicated under improvised conditions.
During automated processing of coins with the use of special equipment for coin authentication the following technical specifications such as size and weight are applied, as well as spectral signature i.e. a material-specific emittance.
Mr Volodymyr Tyshchenko, Head of Office for Money Production and Protection of the NBU Cash Circulation Department, emphasized that, considering the lifespan of coins, such replacement of banknotes of low denominations with coins will save the state nearly UAH 1 billion.
He explained that coins’ life span can reach 20 years while banknotes of UAH 1 and UAH 2 denominations can stay in circulation for only a short period of time – about 1.5 years.
For reference.
The Mint is a structural unit of the NBU Banknote Printing and Minting Works that produces coins and state awards.
The Mint was put into operation in 1998. The Austrian Mint served as a subcontractor in the construction of our manufacturing facility.
The Mint began minting small (circulating) coins in late 2000. The first circulating coin to be struck at the Mint was 1 kopiika coin.
In total the Mint has produced almost 10 billion of low denomination and circulating coins.
