Overhaul of Ukraine's Banknote Circulation
The National Bank of Ukraine has announced that, effective March 2, 2026, paper banknotes in denominations of 1, 2, 5, and 10 hryvnias from the 2003-2007 series will no longer be legal tender. This move finalizes a long-planned replacement of these notes with coins. The phase-out of the 1 and 2 hryvnia notes began back in 2020, while the process for the 5 and 10 hryvnia notes started in 2023. This currency modernization is part of a broader economic strategy following Russia's full-scale invasion in 2022.
According to the central bank, these low-denomination paper notes have an average lifespan of only about 2.5 years and are currently in poor condition due to wear and tear. In contrast, the coins that are replacing them are far more durable, with an expected service life of approximately 20 to 25 years.
Deadlines for Exchanging Old Notes
Holders of the old paper notes have several options and deadlines for a free exchange:
- All branches of Ukrainian banks will exchange the notes until February 26, 2027.
- Authorized financial institutions, including Oschadbank, PrivatBank, Raiffeisen Bank, and PUMB, will continue exchanges until February 28, 2029.
- The National Bank of Ukraine itself will offer an unlimited, no-deadline exchange at its branches, providing a permanent solution for citizens.
This retirement of old banknotes marks a significant step in modernizing Ukraine's monetary system. The shift to coins aims to reduce the costs associated with printing and processing money while increasing its longevity. The National Bank states that the change is also designed to simplify cash circulation, improve transactional efficiency, and mitigate the risks posed by worn-out paper currency.