the second reason is economic feasibility. considering the growth of income and prices, ukrainians essentially have no need for low - denomination coins, instead there is demand for a banknote with a denomination higher than 500. the structure of cash in circulation has also changed. at present, 500 hryvnia banknotes account for over 55 %, and 200 hryvnia banknotes account for one third. considering global experience, the 50 % threshold is indicative of the need for a higher denomination. 1 / 2 bis central bankers'speeches thus, a new 1, 000 hryvnia banknote is long overdue. the third reason is saving costs for the state and business. the costs of the state and cash circulation participants on producing, processing, transporting, and storing banknotes and coins will be reduced. thus, when and how will these decisions be implemented? the 1, 2, and 5 kopiika coins will cease to be means of payment in ukraine from 1 october 2019. from that time onwards, these coins will no longer be accepted for cash payments for goods and services, and the nbu will commence the withdrawal of these coins from cash circulation. at the same time, the public will be able to exchange these coins without limitation and free of charge for coins and banknotes of other denominations during the next three years. furthermore, we intend to gradually withdraw 25 kopiika coins. unlike 1, 2, and 5 kopiikas, 25 kopiikas will for now remain in cash circulation. you can use them to pay for goods and services. but these coins, if received by banks, will not be returned into circulation. with time, their number in circulation will decrease. the new banknote denomination ( uah 1, 000 ) will be put into circulation on 25 october 2019. and now i present to you the new highest denomination banknote. ( pause, the governor takes the tube in his hands ) according to the procedure for disclosing classified information, i have to open this tube and show you an uncut sheet of the new banknotes. ( opens the tube, demonstrates the banknote sheet and gives one minute for filming ) as you can see, the design of the new banknote is similar to the designs of the upgraded 20, 100 and 500 hryvnia banknotes. the front of the banknote features a portrait of volodymyr vernadskyi. the building of the presidium of the national academy

sidestep the conventional crises often faced by small, open economies. while it may seem that the recent global inflationary wave has been effectively tackled, with central banks successfully navigating the challenge, a new set of challenges arises due to the high stakes of losing control over inflation. according to the imf projections, global inflation is expected to decelerate to 6. 9 % in 2023 from 8. 7 % in 2022, further dropping to 5. 8 % in the following year. the anticipation is that most central banks will achieve their inflation targets by 2025. even in ukraine, amidst a war and active military operations, we have managed to bring inflation close to our target of 5 %. however, can we afford to let our guard down? i am convinced that the answer is no. the noticeable slowdown in inflation sets the stage for nuanced discussions regarding the pace of monetary policy normalization and the support of economic growth across different countries globally. central banks find themselves at a crossroads : what is the greater risk a€ “ being too cautious or not cautious enough? what is the comparative cost of overly tight policies versus excessively loose ones? domestically, we are actively engaging in these discussions. overly strict monetary policy in a low inflation environment can detrimentally impact certain economic sectors and hinder overall growth, especially during times of war. simultaneously, inflation risks tied to resurging consumption and uncertainties in commodity markets remain elevated. given these circumstances, a premature shift to interest rate easing poses substantial risks to the entire macroeconomic system and the broader economy. we recognize that this challenge extends beyond ukraine and is relevant to the majority of central banks worldwide. each of us understands the potential cost of missteps and acknowledges that a return to high inflation poses risks of destabilizing inflation expectations, eroding trust, and reverting to an era of elevated inflation. complicating matters further is the difficulty in gauging the full impact of policy measures already implemented in individual countries, as policy transmission takes time. consequently, most central banks today adopt a cautious approach, characterized by vigilant observation and preparedness for active response. it appears that forward - thinking central banks in emerging markets are presently adhering to a strategy of prudent policy. the national bank of ukraine is also adhering to such a strategy. despite the temporary pause in inflation targeting, we remain steadfast in our commitment to ensuring price and financial stability and promoting sustainable economic