Ukraine Phases Out Small Banknotes: What to Do with Your 1, 2, 5, and 10 Hryvnia Notes

Changes to Small-Denomination Currency in Ukraine

According to ХВИЛЯ: Ukraine is entering the final stage of phasing out its old, low-value paper money. Starting March 2, 2026, banknotes in denominations of 1, 2, 5, and 10 hryvnias (from the 2003-2007 series) will be officially withdrawn from circulation and replaced with coins. These notes will no longer be accepted for payments in stores, on public transport, or for services, as retailers and banks will stop taking them as legal tender. This move is part of a long-term modernization of the national currency system.

Exchanging Old Banknotes for Coins

All banks in Ukraine will exchange these old banknotes for coins until February 26, 2027. Furthermore, several authorized banks, including:

• Oschadbank
• PrivatBank
• Raiffeisen Bank
• PUMB

will accept them until February 28, 2029. The National Bank of Ukraine (NBU) has declared an unlimited exchange period, allowing citizens to swap their old notes free of charge and without commission fees indefinitely.

According to the NBU, small paper banknotes have an average lifespan of just 2.5 years, whereas coins can remain in circulation for 20 to 25 years. Coins of these denominations have been in circulation since 2018, and the entire replacement process is scheduled to last six years. It's worth noting that 1, 2, 5, and 10 hryvnia notes are already scarce in retail, as the public has largely stopped using them, meaning most remaining notes in circulation are worn out. This shift is common in many economies seeking more durable and cost-effective currency.

This step is part of a broader trend to modernize Ukraine's monetary system, aiming to increase payment efficiency and reduce money-handling costs. Replacing paper notes with coins is expected to lower production expenses for new currency and reduce the risk of counterfeiting. The transition can be viewed as a positive signal for the economy, demonstrating adaptation to modern financial realities and a commitment to a more resilient payment infrastructure.