The National Bank of Ukraine (NBU) has recently announced its proposal to replace the current Ukrainian currency, kopeks, with a new unit known as «shag.» This announcement was made on September 2nd by the NBU press office.
The decision to replace the kopek is a part of the NBU’s ongoing efforts to modernize and streamline the Ukrainian currency system. According to the NBU, this change will simplify the monetary system and improve its efficiency by reducing the number of denominations in circulation.
The kopek, which has been in circulation since the early 1990s, has been a symbol of Ukraine’s independence and sovereignty. However, the NBU believes that the time has come for a change. The kopek is currently the smallest unit of Ukrainian currency, with 100 kopeks equaling one hryvnia. This means that there is a need for frequent use of small denominations, which can be inconvenient for both businesses and consumers. The introduction of the shag will eliminate this inconvenience and make transactions smoother.
The new unit, «shag», will have a value of 1/1000 of a hryvnia, making it 10 times smaller than the current kopek. The name «shag» has been chosen as a tribute to the Ukrainian word for «step,» symbolizing progress and moving forward towards a more modern and efficient monetary system.
The NBU has also emphasized that this change will not have any impact on the actual value of the hryvnia. The exchange rate will remain the same, and there will be no changes in the pricing of goods and services. The only difference will be the denomination of the currency, making it easier for both consumers and businesses to handle transactions.
The introduction of the shag will also have a positive impact on the Ukrainian economy. The NBU estimates that this change will save the government approximately 270 million hryvnias per year in the production and maintenance of coins. This saving can be utilized for other important economic initiatives.
The proposal has received positive feedback from industry experts and business leaders. They believe that this change will improve the efficiency of monetary transactions and reduce costs for businesses. The shag will also bring the Ukrainian monetary system in line with international standards, making it easier to conduct international transactions.
The NBU has assured that the transition from kopeks to shag will be smooth and will not cause any disruptions in the economy. The NBU will work closely with banks and other financial institutions to ensure a seamless transition for businesses and consumers. The new coins will be gradually introduced into circulation, and kopeks will continue to be accepted until they are fully replaced.
In conclusion, the NBU’s proposal to replace kopeks with shag is a step towards a more efficient and modern Ukrainian currency system. This change will bring numerous benefits to both the economy and the everyday lives of citizens. The introduction of the shag will simplify transactions, reduce costs, and align the Ukrainian currency with international standards. The NBU’s decision is a positive and forward-thinking move that will contribute to the growth and development of the Ukrainian economy.
