Ukraine to Phase Out Low-Denomination Hryvnia Banknotes by March 2026

Withdrawal of Banknotes and Coins from Circulation

According to Главком: The National Bank of Ukraine (NBU) will officially remove 1, 2, 5, and 10 hryvnia paper banknotes, issued between 2003 and 2007, from cash circulation starting March 2, 2026. This move is the final stage of a gradual phase-out that began in 2020 with the 1 and 2 hryvnia notes, followed by the 5 and 10 hryvnia notes in 2023. These low-value paper notes have an average lifespan of just 2.5 years, making them costly to maintain. This is part of a broader, ongoing modernization of Ukraine's payment infrastructure.

Coin Circulation

To replace the paper notes, coins of the same denominations have already been introduced. The 1 and 2 hryvnia coins entered circulation on April 27, 2018, followed by the 5 hryvnia coin on December 20, 2019, and the 10 hryvnia coin on June 3, 2020. These coins are far more durable, with an expected circulation lifespan of 20 to 25 years. In a related move, the NBU also began withdrawing the 10-kopiyka coin from circulation on October 1, 2025.

Residents will have ample time to exchange their old notes. All Ukrainian bank branches will accept them until February 26, 2027. Major authorized banks, including Oschadbank, PrivatBank, Raiffeisen Bank, and PUMB, will offer exchange services until February 28, 2029. The National Bank of Ukraine itself will provide an indefinite exchange period.

The central bank cites several key reasons for this currency overhaul:

• Reducing the costs associated with processing, transporting, storing, and circulating cash;
• Enhancing the overall quality of cash in circulation;
• Improving the convenience of cash transactions for the public.

This change is a strategic component of the NBU's plan to modernize the national payment system and boost the efficiency of financial operations. The withdrawal of old banknotes and coins aims not only to improve cash quality but also to adapt to modern economic conditions that demand greater consumer convenience. The multi-year exchange process is designed to allow citizens to adjust gradually without significant financial disruption.