From January 1, 2023, the National Bank of Ukraine (NBU) will begin withdrawing from circulation paper banknotes in denominations of 5, 10, 20 and 100 hryvnias of the 2003-2007 samples for gradual replacement with updated banknotes: circulating coins of 5 and 10 hryvnias of the 2018 sample and banknotes in denominations of 20 and 100 hryvnias of the new generation, the press service of the bank said on Monday.

The decision was made by NBU Board in Resolution No. 213 dated October 4, 2022 and published on the website of the Central Bank.

According to the report, the main goal of such a decision is to improve the quality of cash in circulation (due to the wear and tear of the previous generation banknotes), improve cash payments and their convenience for the population. In addition, a large number of different designs of banknotes of the same denomination in circulation can lead to confusion, the NBU said.

"The gradual replacement of banknotes of previous generations with the corresponding circulating coins and modernized banknotes will increase the protection and quality of money and make settlements more convenient for citizens. This will not create inconvenience, but the state, banks, retail chains, and citizens will benefit from it," the NBU said.

From the beginning of next year, the National Bank, together with banks, will begin a gradual withdrawal of these banknotes from cash circulation, in particular, Ukrainian banks will not issue such banknotes from cash desks for all types of cash transactions, and the NBU bank will stop supporting bank cash desks with such banknotes.

The bank said that such banknotes remain valid means of payment, so citizens will be able to continue to use them without restrictions, they do not need to be specially exchanged.