On 3 June 2020, the National Bank of Ukraine (NBU) will introduce into circulation 10-hryvnia coins that will gradually replace the respective banknotes.
This complements the comprehensive decision to optimize and upgrade the banknote and coin series of hryvnia started in 2014 with the goal to provide secure from counterfeit banknotes, ensure convenient cash settlements, and save state expenses. The optimization will be complete when the 10-hryvnia coin is put into circulation.
The comprehensive redesign effort will eventually reduce the number of hryvnia banknote and coin denominations to 12, which is optimal for Ukraine. All in all, there will be 6 coin denominations (10 and 50 kopiikas and 1, 2, 5 and 10 hryvnias) and 6 banknote denominations (20, 50, 100, 200, 500, and 1 000 hryvnias).
Thus, with regard to the hryvnia, the ratio of six banknotes to six coins in circulation is not only convenient for settlements and meets the demand for cash in the Ukrainian economy, but also complies with the practices of leading central banks (Canada, the UK, Australia, Denmark, Hungary, the Czech Republic, Japan etc.).
Reasons for replacement
In terms of lifespan, replacing banknotes of low denominations with respective coins will save the state of about UAH 1 billion.
Coins have a significantly longer lifespan than banknotes. Coins remain in circulation for about 20–25 years. By contrast, 10-hryvnia bills have an average lifespan of one to two years, which is short, and thus need to be printed, processed, and stored every year. Meanwhile, coins are much easier and less expensive for the state to handle.
As of 3 June 2020, 10-hryvnia coins will become an effective means of payment in Ukraine, and will be used in retail stores or for bank transactions.
First of all, the NBU intends to introduce 5 million of 10-hryvnia coins distributed between NBU regional offices.
So, starting form 3 June 2020, banks will be delivered new currency from the NBU and distribute it to the customers.
The NBU took care to make the transition from banknotes to coins as convenient as possible: the public need not change 10-hryvnia banknotes into respective circulating coins. No time limits will be imposed on the simultaneous use of new coins and previous banknotes in payments. Gradually, as 10-hryvnia banknotes wear out, such will be replaced by coins.
As of 1 April 2020, 10-hryvnia banknotes in circulation accounted for 179.3 million.
Design and security
The new circulating coin of 10 hryvnia is small and lightweight of 23.5 mm in diameter and 6.4 grams. The coin is made of galvanized nickel-plated zinc alloy. Considering larger dimensions (diameter, thickness, and edge), the new 10-hryvnia coin stands out from circulating coins of 1, 2, and 5 hryvnias.
Due to a bigger diameter and special grooving on its edge , users will easily distinguish it from coins of other denominations.
The reverse of 10-hryvnia coin depicts the portrait of the Ukrainian hetman Ivan Mazepa; the obverse framed with Old Rus ornament shows the coin’s denomination.
The coin’s visual and tactile security features include the special design of the obverse and reverse, the type of edge used, as well as small obverse and reverse elements that are difficult to reproduce using crude methods.
During automated processing of coins with the use of special equipment, for coin authentication the technical specifications such as size and weight are applied, as well as spectral signature i.e. a material-specific emittance.
As of 1 April 2020, the following coins were in circulation: 1 hryvnia accounted for 195 million coins, 2 hryvnias – almost 190 million coins, 5 hryvnias – over 7.0 million coins. The number of circulating coins will gradually increase in circulation, depending on the economy’s needs.
A video comment of Viktor Zaivenko, Director of the Cash Circulation Department, is available on the NBU’s YouTube channel.
To view the video on the design of the 10-hryvnia circulating coin follow the link.
For pictures of the upgraded coins go to the Flickr account of the NBU.
To view NBU Board Resolution No. 276 On Introducing into Circulation 10-Hryvnia Coins dated 16 April 2020.