Ukraine to Rename Its Smallest Currency Unit in Break from Russian Influence
Word on the StreetMonday, Sep 2, 2024 11:00 pm ET
1min readThe National Bank of Ukraine (NBU) is taking significant steps to rename its smallest currency unit from "kopiyka" to "shah," distancing itself from the Russian "kopek." As Ukraine's war with Russia continues into its third year, this change is seen as a part of the broader initiative to erase symbolic ties with its eastern neighbor, according to NBU Governor Andriy Pyshnyy in a statement made Monday.
Pyshnyy stated, "We have reached an undeniable conclusion that using 'kopiyka' as the name for the coin is effectively a symbol of the occupation by Moscow authorities."
The NBU clarified that renaming the currency unit will not impact inflation since it won't increase the circulating cash in the economy. Given that Ukrainian hryvnia has significantly depreciated, small coins have become nearly obsolete in daily transactions, making this change largely symbolic.
In the current monetary system of Ukraine, one hryvnia is equivalent to 100 kopiykas. Historically, the term "shah" first appeared in the 16th century, before the Russian Empire's conquest of Ukraine. "Shah" was also briefly used as a currency denomination during Ukraine's short-lived independence after World War I.
Before the new shah coins can be minted, the initiative must receive parliamentary approval. If approved, the new coins can be exchanged directly for the same value as the old ones. Post-release, both kopiykas and shahs will circulate simultaneously.
Pyshnyy stated, "We have reached an undeniable conclusion that using 'kopiyka' as the name for the coin is effectively a symbol of the occupation by Moscow authorities."
The NBU clarified that renaming the currency unit will not impact inflation since it won't increase the circulating cash in the economy. Given that Ukrainian hryvnia has significantly depreciated, small coins have become nearly obsolete in daily transactions, making this change largely symbolic.
In the current monetary system of Ukraine, one hryvnia is equivalent to 100 kopiykas. Historically, the term "shah" first appeared in the 16th century, before the Russian Empire's conquest of Ukraine. "Shah" was also briefly used as a currency denomination during Ukraine's short-lived independence after World War I.
Before the new shah coins can be minted, the initiative must receive parliamentary approval. If approved, the new coins can be exchanged directly for the same value as the old ones. Post-release, both kopiykas and shahs will circulate simultaneously.
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