The main reason why banks are going to refuse to use small denomination coins is the high cost of their production. In fact, the issue of coins in denominations of 25, 5, 2, 1 kopeck exceeds their real value. And the return to re-circulation practically tends to zero. In addition, outlets themselves are less and less likely to face the need for small coins. But, when the change in Ukraine will be canceled , and how will this affect the calculation in stores?
Phased elimination
On March 15, 2018, the first decision was made to withdraw coins with denominations of 1 and 2 kopecks from free circulation. But, until October 1, 2019, they will remain solvent, and must be accepted not only by banking structures, but also by any retail outlet. With the onset of October, light coins and 25 kopecks will cease to play the role of the national currency of Ukraine, and will go down in history.
Starting October 1, 2019, checks will be rounded according to the following principle:
- If the final amount in kopecks in the check is between 1-4, rounding down.
- If the amount in the check ends in a digit from 5 to 9, rounding up.
- Rounding is completely canceled, if the client pays by bank transfer, then the check amount is paid without reducing or adding a few kopecks.
Important: some outlets have transferred their calculations to the new system in advance. True, the check is rounded down to zero, regardless of the final figure from 1 to 9 kopecks.
How will this affect the cost of goods
Since rounding occurs for the whole check, there will be no loss on the part of the store and the ordinary consumer. Moreover, in Ukraine there is already an active refusal of cash, and the transition to card payment, by non-cash method. Refusal from small coins will save a lot of money in the country's budget. According to preliminary estimates, the amount will be about 90 million per year.
Optimization of metallic money
Ukraine plans to abandon the issue of small denomination coins, but replace them with hryvnia in denominations of 1, 2, 5, 10. It is no secret that the paper version lasts a year or two, while the metal counterpart does not deteriorate for decades. From a cost-saving standpoint, this move will reduce the cost of re-issuing cash for cash. The coins will remain in the country, they will simply be of a larger denomination. But, they will perform the same function as paper money.
