In Ukraine, inflation has eaten up small coins
From July 1, the minting and issuance of coins in denominations of 1, 2, 5 and 25 kopecks will cease and the minting and issuance of only coins in denominations of 10 and 50 kopecks will continue. Trade and service enterprises, in the absence of small denomination coins, will round up settlement amounts, a PolitNavigator correspondent reports.
This was stated by the Director of the Monetary Circulation Department of the National Bank of Ukraine (NBU) Viktor Zaivenko.
At the same time, small denomination coins that were put into circulation earlier will be used in the future as a means of payment. The NBU will not withdraw them from circulation, he clarified.
Rounding will only be applied if such coins are not available for cash payments.
“Banks must accept small denomination coins from citizens without any restrictions and exchange them for coins and banknotes of other denominations,” Zaivenko emphasized.
Rounding will not be carried out for non-cash payments. It concerns only the total amounts of cash payments in a check and payments in the act of issuing funds or other document and is drawn up when returning funds in the event of a return of goods.
Zaivenko recalled how settlement amounts will be rounded:
the amount that ends with 1-4 kopecks is rounded down; the amount that ends in 5-9 kopecks is rounded up.
Since 1996, the hryvnia has depreciated 14 times.
Inflation has eaten away at small coins in Ukraine.