Denomination in Belarus. What will happen after the denomination in Belarus
17:27 04.11.2015
From July 1, 2016, the Republic of Belarus will denominate the official currency - the Belarusian ruble. The corresponding decision was made by Decree of the President of the Republic of Belarus dated November 4, 2015 No. 450.
The denomination will be carried out by replacing the banknotes of the 2000 model in circulation with banknotes and coins of the 2009 model in the ratio of 10,000 Belarusian rubles in banknotes of the 2000 model to 1 Belarusian ruble in banknotes of the 2009 model. That is, taking into account the chosen scale of enlargement of the Belarusian ruble (1:10,000), the lowest denomination of the banknote currently in force - 100 rubles - will be replaced by the lowest denomination of the new money series - 1 kopeck.
In total, from July 1, 2016, seven denominations of banknotes will be issued into circulation - 5, 10, 20, 50, 100, 200 and 500 rubles, and eight denominations of coins - 1, 2, 5, 10, 20 and 50 kopecks, as well as 1 and 2 rubles.
The general design concept of the new banknotes corresponds to the motto “My Country - Belarus”. Each banknote is dedicated to one of the regions of Belarus and the city of Minsk. The correspondence of the area to the denomination of banknotes is determined in alphabetical order. The image of a banknote in denomination of 5 rubles is dedicated to the Brest region, 10 rubles - to the Vitebsk region, 20 rubles - to the Gomel region, 50 rubles - to the Grodno region, 100 rubles - to the Minsk region, 200 rubles - to the Mogilev region, 500 rubles - to Minsk. The design of the new banknotes of the 2009 series maintains continuity with the banknote series of the 2000 series in terms of the use of images of architectural and urban planning monuments.
On the obverse (front side) of the change (circulation) coins put into circulation, the State Emblem of the Republic of Belarus is depicted, on the reverse (back side) - digital designations of the coin denominations.
Until July 1, 2016, the only legal tender for cash payments in the Republic of Belarus will be banknotes of the 2000 model currently in circulation.
From July 1 to December 31, 2016 inclusive, banknotes of the 2000 model, as well as banknotes and coins of the 2009 model, will be in parallel circulation and must be accepted for all types of payments by all business entities without restrictions.
Over the next five years - from January 1, 2017 to December 31, 2021 inclusive - banknotes of the 2000 model will be exchanged for banknotes of the 2009 model in any amount without restrictions and without charging a commission.
In this case, it will be possible to exchange old banknotes for new ones:
from January 1, 2017 to December 31, 2019 inclusive - in the National Bank, banks and non-bank financial institutions of the Republic of Belarus;
from July 1, 2020 to December 31, 2021 inclusive - at the National Bank of the Republic of Belarus.
The decision to denominate the Belarusian ruble was made in order to improve monetary circulation, simplify accounting and settlements, maintain an optimal banknote structure of the money supply, and significantly reduce government expenses for servicing cash circulation in the Republic of Belarus.
The denomination process is of a technical nature and will not affect the purchasing power of the Belarusian ruble, the exchange rate of the national currency against foreign currencies, as well as the actual level of inflation.
Thus, prices for goods and services from July 1, 2016 will be recalculated taking into account the selected denomination scale - 1:10,000. In other words, if before the denomination a product cost, for example, 100,000 rubles, then after the denomination its price will be 10 rubles. At the same time, to make it easier for buyers to adapt to such changes, during the parallel circulation of old and new banknotes, that is, from July 1 to December 31, 2016, all business entities will be required to indicate two prices - old and new.
Using a similar principle, when carrying out denomination, salaries, pensions, scholarships, cash balances in bank accounts, balance sheets of enterprises and institutions, etc. will be recalculated.
It should be noted that preparations for the denomination in the Republic of Belarus took quite a long period. Thus, the new banknotes, which will be put into circulation on July 1, 2016, were manufactured by order of the National Bank of the Republic of Belarus back in 2008. However, then, due to the global economic crisis and, as a consequence, the deterioration of the economic situation in our country, the denomination was postponed, and the manufactured banknotes were transferred to the Central Vault of the National Bank.
Taking into account the time of production, new Belarusian rubles have certain features. In particular, on the 2009 banknotes issued for circulation there is a facsimile of the signature of P.P., who at that time held the position of Chairman of the Board of the National Bank of the Republic of Belarus. Prokopovich. In addition, the new 50-ruble banknote bears the inscription “pyatsdzesyat,” which does not comply with the current rules of Belarusian spelling. In accordance with the Law of the Republic of Belarus dated July 23, 2008 No. 420-Z “On the rules of Belarusian spelling and punctuation,” this word must be written through the letter “ya” in the second syllable - “pyatsdzyasyat”.
When the National Bank makes subsequent orders for the production of new banknotes, these discrepancies will be eliminated.
Images of banknotes and coins of the National Bank of the Republic of Belarus, issued for circulation from July 1, 2016, can be found on the official website of the National Bank athttp://www.nbrb.by/Press/?nId=1214
Department of Information and Public RelationsNational Bank of the Republic of Belarus
In the summer of 2016, work began in Belarus on the largest denomination for the state. The old “bunnies” lost 4 zeros at once, so jokes about millionaires are a thing of the past. The reasons for the redenomination are quite clear; rapid inflation and huge denominations make calculations difficult.
The country prepared for this process a long time ago, and the first new banknotes and coins appeared back in 2009.
With the release of the first batches of new rubles, the country faced crisis problems, and the process of transition to the new money had to be postponed.
In this article, we will take a detailed look at the new Belarusian money and coins.
What is a denomination?
Denomination– reduction of the denomination of money to simplify payments.
For Belarus, such a process has been asking for a long time, so long ago that local residents have become accustomed to their money, and tourists are in some shock when they have to pay several thousand just for travel.
They reduced the denomination of money by 10 thousand, that is, 10,000 turned into 1 ruble, 100,000 - 10 rubles, and so on.
The first denominated ruble appeared in banks in 2016, on July 1, on the same day all prices were recalculated to new ones, this applies to both social services and other systems of the country.
The denomination of the Belarusian ruble takes a very long time, so at first Belarusians will have to get used not only to the new denominations, but also to the fact that along with the new ones, some of the old money remains in circulation.
New Belarusian rubles
It is impossible to introduce new denominations without new banknotes. Now Belarus has its own banknotes and new coins.
The appearance of the banknotes has a traditional content, with paintings of outstanding architectural buildings in various areas, as well as thematic collages dedicated to art.
In general, the design of the banknotes is more reminiscent of the new European money, this is not surprising, because the appearance was created thanks to an artist from the EU countries.
Money is also printed abroad, or rather in the UK.
In the photo below, you can see in more detail what the new Belarusian money now looks like.
5 rubles
Junior parity of banknotes. On one of the sides there is a drawing of the Kamenets Tower. On the back there is an image of the life of the Slavs in ancient times.
10 rubles
The front part is the Transfiguration Church, in the Vitebsk region. The reverse is a picture of the themes of printing and education.
20 rubles
The face is the Rumyantsev Palace, the back is the theme of spirituality.
50 rubles
Considering that the first batches contain 50 rubles of the 2009 model, some of the money will be in circulation with an incorrectly written denomination.
The fact is that, according to the new rules, the spelling of the number 50 has changed, this will be reflected in the new editions, but they decided to leave the old ones in circulation.
Face – Mir Castle, Grodno region, back – various images corresponding to the theme of art.
100 rubles
The face is the Radziwill Castle in Nesvizh. The focus is theater and folk festivals.
200 rubles
The museum in Mogilev on the front side and at the back - elements of urban planning and various crafts.
500 rubles
Senior parity, on which the National Library of the city of Minsk is drawn. On the reverse side there are elements closely related to the themes of literature.
Having studied the photos of the new banknotes, you can see that the year 2009 is written on them. It was this year that a new design of money was approved and the first samples were printed for release into circulation, but the process was slightly delayed.
They decided to leave the appearance and old banknotes for redenomination and gradually introduce fresh batches.
New Belarusian kopecks
In addition to banknotes, new coins also appeared. Belarus does not have its own mint and does not intend to create one. The coins were brought to the country from Europe, or rather from Lithuania and Slovakia.
The new Belarusian ruble and other coins, at the time of their appearance in circulation, had noticeable destruction of the metal. The National Bank noted that this drawback is typical only for the first batches; in new batches, the characteristics of the metal will change.
A total of eight denominations appeared, which we will look at in detail in the photo:
Obverse coins - a single one, in the center - the state emblem, under it - the inscription Belarus and at the very bottom - the date of minting.
1 kopeck
In the center there is a large number 1, on the right is the denomination, on the left is an ornament (a symbol of wealth).
2 kopecks
Copper plated steel base.
Number 2 in the center, on the right is the denomination, on the left is the ornament (symbol of wealth).
5 kopecks
Copper plated steel base.
Big number 5 in the middle. On the right is parity, an ornament (symbol of wealth) in the center of the curl of the number itself.
10 kopecks
Large number 10, on the right - dignity, ornament (symbol of fertility) in the center of the number 0.
20 kopecks
Steel disc coated with an alloy of brass and copper.
Large number 20, on the right - dignity, ornament (symbol of fertility) in the center of the number 0.
50 kopecks
Steel disc coated with an alloy of brass and copper.
The large number is 50, on the right is the dignity, the ornament in the center of the number 0.
1 ruble
Steel coin with cupronickel outer layer.
1 Belarusian ruble has a large number one in the center, the denomination on the left, and an ornament on the right, symbolizing the desire for freedom and happiness.
2 rubles
Steel base for outer ring and inner disc. In the center there is a nickel silver coating, on the outside - brass.
As you can see in the photo, the coin has a different obverse. On the front part of this sample there is the country's coat of arms (central disk), the year of issue on the bottom on the brass ring, on top - Belarus, on the right and left is the "Bagach" ornament. On the reverse there is a denomination and an ornament, which is a symbol of man’s desire for freedom.
At the beginning of November 2015, the President of the Republic of Belarus signed a law on the redenomination of the official banknote in the summer of 2016. This entire denomination in Belarus has become the largest, and the news about the change of banknotes is one of the loudest in recent times. What led to the depreciation of the Belarusian currency and what will happen after the redenomination?
and why is it needed
Denomination is an economic procedure that is carried out with the aim of changing the nominal value of the national currency in order to stabilize money circulation after hyperinflation and simplify the payment procedure.
What will happen after the denomination in Belarus? During the procedure, old banknotes are exchanged for new ones, usually of lower value (face value), but with the same purchasing power. The denomination provides for the gradual withdrawal of the old currency from circulation. If this happens over several weeks, then most often not the entire money supply is exchanged, which causes additional problems associated with the subsequent inability to exchange currency and loss of funds. If several years are allotted for the procedure, when old banknotes circulate on a par with new ones, and currency can be freely exchanged for new money, then the process occurs, albeit slower, but more harmoniously and stably.
During denomination, salaries, tariffs, the cost of food and services provided, scholarships, pensions and other social benefits are recalculated. The state gets rid of excess money supply, which allows:
- further reduce the costs of issuing new banknotes of larger and larger denominations;
- simplify all calculations: both daily household expenses and monthly income of the population, as well as calculations at the state or international level;
- identify hidden incomes of the population, since in order to avoid financial losses, all savings are exchanged, and non-cash funds are transferred into cash;
- strengthen the national currency in relation to the banknotes of foreign countries.
Denomination is usually carried out after hyperinflation. In other cases, the procedure can undermine the stability of the country’s economy and negatively affect the psychological state of the population. In addition, when denomination is carried out “not according to indications,” purchasing power suffers.
In simple words about denomination
What is this? Simply put, denomination in any country in the world (including denomination in Belarus) is a process when a certain number of zeros are “removed” from a currency, depending on the scale of previous hyperinflation, that is, a sharp and significant depreciation of money.
What will happen to prices and tariffs? In connection with the procedure, all prices and payments (salaries, tariffs, social benefits, scholarships) are recalculated to new money without changes.
Why is denomination needed? The procedure makes it possible to simplify calculations, increase the status of the national currency and, in the future, reduce government costs for issuing banknotes of ever larger denominations.
Reasons for denomination in Belarus
The denomination in Belarus is carried out due to hyperinflation. The country has been experiencing a depreciation of the national currency since independence. From 1992 to 2012, the monetary unit depreciated 237.5 million (!) times, which is almost 12 million percent per year. However, hyperinflation in Belarus is not so “stable”: the highest percentages occurred in the 1990s, and in the 2000s, inflation could be more than fifty percent per year. For comparison: the normal inflation rate is considered to be 3-5% per year.
A rather strange situation has become the reason that every first resident of Belarus can rightfully consider himself a millionaire. One pair of high-quality jeans, for example, cost a little more than one million Belarusian rubles, and the average salary of a doctor was six million.
What will be the denomination in Belarus?
The redenomination in 1994 made it possible to remove only one zero from the national currency in relation to the 1993 banknotes. In 2000, one thousand was exchanged for one ruble, and in 2016 the exchange ratio will be 1 to 10,000.
A similar situation occurred only in one of the union republics. Thus, in 1995, Georgia reduced the value of the national currency by a million times, but it is also far from Belarus, where the ratio of the 2016 ruble to the 1993 currency was 100 million times.
What will happen after the 2016 denomination? The denomination of the ruble in Belarus in 2016 involves “reducing the number of zeros” on banknotes by 4. Thus, if a certain product previously cost 1,000,000 rubles, now its price will be 100.
Timing of the economic procedure
Money denomination in Belarus will be carried out until the end of 2021. The process started on July 1, 2016 and includes the following stages:
- until December 31, 2016, money exchange is carried out without restrictions, the old and new currency are in parallel circulation;
- until December 31, 2019, exchange will be possible in banks and non-banking organizations;
- until December 31, 2021, it will be possible to exchange old banknotes for new ones only at the National Bank.
Until the end of this year (2016), sellers are required to indicate two prices simultaneously: the cost of goods and services before and after denomination.
What will the new banknotes be like?
Each of the new banknotes will be dedicated to one of the six regions of the country and the capital. When developing the design, images of architectural monuments were used. Eight coin denominations have also been prepared. according to the President of the Republic of Belarus, “they are somewhat reminiscent of the euro.”
Even the National Bank indicated in its official statement that the new banknotes are somewhat unusual (“have some features”). Firstly, there will be a spelling error on the fifty-ruble bill, and secondly, P. Prokopovich, who no longer holds this post, will be indicated as the head of the National Bank on the new banknotes. Such confusion resulted from the fact that preparations for a large-scale denomination in Belarus began back in 2008, when part of the banknotes were printed, but the global financial crisis prevented the plan from being carried out. Since then, the republic has managed to carry out a language reform and change the head of the National Bank.
Rate against other currencies
What will happen after the redenomination in Belarus in relation to other currencies? Some online converters currently consider the exchange rate to be the same as before the denomination, others have already “rebuilt”.
At the moment, one ruble costs 33 Russian or 13 hryvnia. One dollar after redenomination in Belarus costs a little less than two rubles, one euro - a little more.
Denomination is a technical operation with national currency, consisting of replacing government banknotes in circulation with new ones, while simultaneously reducing their denomination. As a rule, for convenience of calculations, the nominal value is reduced by a multiple of 10, i.e. “zero trimming” occurs.
Although there should not be an actual decrease in the money supply during denomination, a decrease in denomination makes it possible to simplify settlement transactions and make monetary units psychologically more convenient and understandable to the average user.
All prices and amounts of financial transactions during denomination must change in accordance with changes in the denomination of monetary units. Small deviations are allowed to round off the obtained figures.
Denomination in Belarus in 2016
On November 4, 2015, the President of the Republic of Belarus signed Decree No. 450 “On the denomination of the official monetary unit of the Republic of Belarus.” The denomination date is set for July 1, 2016. This will be the largest change in the denomination of the currency in the entire history of the Republic. It is planned to reduce it by 10,000 times. For example: a 10,000 ruble bill will be exchanged for 1 ruble, a 100-ruble bill for 1 kopeck.
This is the third denomination since the emergence of its own national currency in 1992.
The first Belarusian banknotes, the so-called “bunnies,” were printed with a denomination ten times less than that indicated in the calculations. This happened at a moment of uncertainty after the collapse of the USSR, when Belarusian rubles circulated for some time in parallel with Soviet ones. Inflation at that time was perhaps the only working economic tool. Due to the depreciation of the ruble, prices were recalculated almost monthly.
The first denomination took place in 1994, the estimated value of money decreased by 10 times. Since the non-existent zero was removed from banknotes, the banknotes were “not damaged.”
Further inflationary processes required an ever-increasing influx of money supply; bills with animals were gradually replaced by bills with buildings, with a simultaneous increase in denomination. In 1999, the denomination of the largest banknote was already 5 million rubles. For comparison, the smallest banknote, sample 1992, was 50 kopecks (“squirrel”).
As a result of the second denomination in 2000, millions became thousands, and three zeros were removed from banknotes.
The new money, although it gradually depreciated in the process of inflation (no longer as high as in the 90s), is still in circulation. As unnecessary, denominations of less than 100 rubles were withdrawn from circulation, and 200,000-dollar bills appeared.
Theoretically, the denomination should not have any effect on the rate of inflation, the price level, or the interest rate. Unfortunately, the experience of previous denominations suggests otherwise. During the year, some prices were “rounded” almost twice.
The need for the upcoming denomination was actively discussed after the threefold fall in the ruble exchange rate in 2011, however, no official decision was announced. Although, as it has now become known, work in this direction was carried out. New Belarusian money, it turns out, was printed back in 2009, and therefore bears some traces of this troubled time. Namely: the signature of the former head of the National Bank P.P. Prokopovich, the old spelling “pyatsdzesyat”, instead of “pyatsdzyasyat” - as follows from the spelling rules in force today.
The next news will be the return of metal coins to circulation. Thus, we will leave the number of countries (usually suffering from hyperinflation) that only have paper money in circulation. This also gives hope that future inflation will never be so high that the price of metal in coins will become more expensive than their face value.
The design of future banknotes is noticeably different from the already familiar ones and “brings Belarus much closer to Europe”; the new rubles are very similar to the euro.
New banknote of the highest denomination:
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In Belarus, a denomination will be held on July 1, 2016. The corresponding decree No. 450 “On the denomination of the official monetary unit of the Republic of Belarus” was signed by Alexander Lukashenko on November 4.
According to the press service of the National Bank, “The denomination process is of a technical nature and will not affect the purchasing power of the Belarusian ruble, the exchange rate of the national currency against foreign currencies, as well as the actual level of inflation.”
Banknotes of the 2000 model will be withdrawn from circulation. They will be replaced with banknotes and coins of the 2009 model in the ratio of 10 thousand “old” rubles to 1 “new” ruble.
Banknotes in denominations of 5, 10, 20, 50, 100, 200 and 500 rubles, as well as coins in denominations of 1, 2, 5, 10, 20, 50 kopecks and 1 and 2 rubles will be put into circulation.
From July 1 to December 31, 2016, banknotes of the 2000 model and banknotes of the 2009 model will be in parallel circulation.
The exchange of banknotes of the 2000 sample for banknotes of the 2009 sample is carried out without restrictions and without charging a fee from January 1, 2017 to December 31, 2019 - in the National Bank, banks and non-bank financial institutions, from January 1, 2020 to December 31 2021 - at the National Bank.
From July 1 to December 31, 2016, manufacturers, sellers, suppliers, performers and their representatives, when providing consumers with information about the goods (works, services) offered, are required to indicate prices (tariffs) in banknotes of the 2000 model and banknotes of the 2009 model.
During the denomination, salaries, pensions, scholarships, cash balances in bank accounts, balance sheets of enterprises and institutions, etc. will be recalculated.
The new banknotes, which will be put into circulation on July 1, 2016, were manufactured by order of the National Bank back in 2008. “However, then, due to the global economic crisis and, as a consequence, the deterioration of the economic situation in our country, the denomination was postponed, and the manufactured banknotes were transferred to the Central Vault of the National Bank,”- reports the press service of the National Bank.
In this regard, on banknotes of the 2009 sample there is a facsimile of the signature of the then Chairman of the Board of the National Bank Peter Prokopovich.
In addition, the new 50-ruble banknote bears the inscription “pyatsdzyasyat”, which does not comply with the current rules of Belarusian spelling - this word must be written with the letter “ya” in the second syllable (“pyatsdzyasyat”). When producing new banknotes, these inconsistencies will be eliminated, the press service of the National Bank notes.
The general design concept of the new banknotes corresponds to the motto “My Country - Belarus”. Each banknote is dedicated to one of the regions of Belarus and Minsk. The correspondence of the area to the denomination of banknotes is determined in alphabetical order.
The image of a banknote in denomination of 5 rubles is dedicated to the Brest region, 10 rubles - to the Vitebsk region, 20 rubles - to the Gomel region, 50 rubles - to the Grodno region, 100 rubles - to the Minsk region, 200 rubles - to the Mogilev region, 500 rubles - to Minsk.
The design of the new banknotes of the 2009 series maintains continuity with the banknote series of the 2000 series in terms of the use of images of architectural and urban planning monuments.
The last denomination of the Belarusian ruble was carried out in 2000. Then three zeros were removed from banknotes. In addition, in 1994, prices and salaries were reduced 10 times (then the only means of payment was the National Bank banknote, which at face value was 10 times “heavier” than the Soviet/Russian one).
Thus, the largest new banknote of 500 rubles will correspond to the previous 50 billion rubles.
