Ukraine to Withdraw Low-Denomination Paper Banknotes
The National Bank of Ukraine has decided to remove paper banknotes in denominations of 1, 2, 5, and 10 hryvnias from circulation. This change will take effect on March 2, 2026, after which these specific notes will no longer be legal tender for payments. They will be replaced by metal coins of equivalent value. It is crucial to note that from that date forward, no retail networks, service providers, banks, or financial institutions will be permitted to accept these old banknotes for any transactions.
The exchange of old notes for new coins will be free of charge, with no commissions applied. This initiative to phase out small paper notes has been in the planning stages for some time. As Oleg Prokhozia explained,
"Until March 2, these banknotes remain in circulation and are valid for payment. After March 2, you will not receive them as change—they will be withdrawn."
Rules for Exchanging Banknotes
You can exchange any amount of the old notes according to the following schedule:
- At any branch of a Ukrainian bank – until February 26, 2027;
- At authorized banks, including PUMB, PrivatBank, Raiffeisen Bank, and Oschadbank – until February 28, 2029;
- Directly at branches of the National Bank of Ukraine – indefinitely.
These measures are designed to streamline cash circulation and improve convenience for the public. This move is part of a broader, long-term trend where many countries replace low-value notes with more durable coins.
The withdrawal of these paper banknotes aims to increase the efficiency and convenience of cash transactions in Ukraine. Replacing small notes with metal coins is expected to simplify exchange processes and reduce the costs associated with printing new paper currency. This reform is a component of the National Bank of Ukraine's overall strategy to modernize the country's financial system and enhance its payment environment.