Agrarians need to prepare to change 10-hryvnia for kopecks

Submitted by bashun on Thu, 03/15/2018 - 14:20

On March 14 in the National Bank of Ukraine new coins with a nominal value of 1, 2, 5 and 10 UAH will be presented, which eventually replace the banknotes of the corresponding denominations. This was written bz the director of the Association of Trade Network Suppliers Oleksii Doroshenko on his Facebook page, reports AgroRolit.com.

According to him, the desire of the NBU to replace the paper hryvnia with a kopeck of denominations of 1, 5 and 10 testifies to the assessment of inflation in the next 3 years.

"That is, we must prepare that prices will be considered practically only in hryvnia. The price level in the country led to the withdrawal of kopecks from circulation, so in November 2017 the National Bank began a discussion about the possible withdrawal of 1, 2, 5 and 25 kopecks, leaving only coins with a face value of 10 and 50 kopecks. Yesterday's step of the regulator is a continuation of the process that began last year, " writes Oleksii Doroshenko.

The cost of coinage is higher than printing, but in the medium and long term, the state will save on this, since the coin is almost eternal.

"We have never seen the data of the National Bank on the life of each banknote separately. The data of other central banks show that small paper money live on average 1.5 years, such as a bill of $ 1. A denomination of $ 10 - an average of 3 years, and the most in $ 100 - 9. Therefore, for several cycles of circulation, the cost of issuing and supporting small bills is equal to the cost of issuing coins, and then the state will already save on this, " explains the expert.

He also noted that the increasing use of electronic payments in our lives leads to less and less use of cash.

Tags
English

Read more