Ukraine to Phase Out Low-Denomination Banknotes by February 2027.

Ukraine's Currency Overhaul: Banknotes to be Replaced by Coins

According to TSN.ua: Starting February 26, 2027, Ukraine will cease using 1, 2, 5, and 10 hryvnia banknotes from the 2003–2007 series for everyday transactions. This move is part of a broader, long-term modernization of the nation's currency system, replacing paper notes with more durable coins. The withdrawal process began earlier, with 1 and 2 hryvnia notes phased out from October 1, 2020, followed by the 5 and 10 hryvnia notes on January 1, 2023.

Residents can exchange these old banknotes freely and without any fees at Ukrainian banks until the February 2027 deadline. This currency transition is a common practice globally to reduce long-term costs, as coins last significantly longer than paper notes. After that date, until February 28, 2029, the notes will only be accepted at authorized institutions, including:

• Oschadbank
• PrivatBank
• Raiffeisen Bank
• PUMB

The National Bank of Ukraine (NBU) will continue to accept these denominations indefinitely.

The shift is driven by practicality: the average lifespan of these low-value banknotes is only about 2.5 years, whereas coins remain in circulation for 20 to 25 years. This policy by the NBU aims to enhance the efficiency and stability of Ukraine's financial infrastructure by cutting printing costs and improving cash handling.

Ultimately, replacing short-lived banknotes with long-lasting coins represents a strategic step toward a more resilient and cost-effective monetary system for Ukraine, ensuring greater reliability for both consumers and financial institutions.