back to banknotes
Sergey Belov, Deputy Governor of the Central Bank responsible for cash circulation said Izvestia, where ten-ruble and five-ruble notes are now very rare. If they are returned to circulation, their service life will increase due to the use of new technologies in production.
According to him, the Central Bank has not ordered a ten-ruble note from Göznak since 2013. In the zero years, banknotes were widely used, but quickly became obsolete. Therefore, they were replaced by coins. Coins are more expensive to manufacture, but they are more durable.
“Now the technologies have changed, for example banknotes can be varnished, which allows to increase their service life by 30%. The varnishing technology has been tested, we have full confidence in it and we will use it in our future work.”
He noted that the increase in the cost of the mine since 2009 also favored the return of banknotes. Now that 10-ruble coins have become costly to print, the production of paper banknotes is more profitable.
“We are also discussing the issue of resuming the printing of five-ruble notes, which after 1998 stopped ordering from Goznak. “These banknotes are still in circulation, but they are extremely rare,” he said.
He noticed that coins with small notes, as a rule, fall into the piggy bank of citizens and do not return to circulation. Retail chains, pharmacies and gas stations supported the return to paper notes. Its representatives explained that the metal is heavy and must be counted, stored and transported. And light banknotes are much more convenient to use.
Belov stressed that the coins already minted will not be exchanged, they will be left in circulation. According to him, they will be replaced in 2025, at the end of the year, when they plan to issue 10-ruble notes according to the 1997 model. Five-ruble notes will also be produced according to the 1997 model.
Modeled after 1997
Banknotes with a face value of five rubles, according to information published on the website of the Central Bank introduced It entered circulation in 1998. The size of the banknote is 137 × 61 mm (smaller than other banknotes).
“The banknote is made of high quality light green cotton paper. Violet, red and light green fibers are embedded in the paper, and there is also a security thread placed vertically and visible through the light. The paper has local watermarks placed to the left and right of the coupon margins.
The banknote is dedicated to Veliky Novgorod. The front depicts the city monument “The Millennium of Russia” against the backdrop of the Hagia Sophia Cathedral. And in the back is the wall of the Novgorod Kremlin.
The department of working with the media of the Veliky Novgorod administration was pleased with the possible return of five-ruble bills.
“Of course, we are very pleased that Novgorod is the birthplace of the Russian state. This is one of the oldest cities and oldest capitals of the Russian state. Therefore, it is very important for all residents of Russia to know where their sources are and to look at the most important shrines of our country. In addition, there is the Millennium of Russia monument, which was opened in our city on the 1000th anniversary of the Russian state, and the Hagia Sophia Cathedral, Russia’s oldest Orthodox stone church.
10 rubles banknote introduced It was put into circulation in 1998. It has dimensions of 150×65 mm.
“The banknote is made of high quality light yellow cotton paper. Light green, red and purple colored fibers are embedded in the paper and there is also a security thread placed vertically and visible through the light. There are local watermarks placed to the left and right of the coupon areas of the paper”, “This is how the banknote is described on the Central Bank website.
The paper banknote is dedicated to Krasnoyarsk. The obverse depicts a bridge between the Yenisei and the city chapel. And in the back is the dam of the Krasnoyarsk hydroelectric power station.
Risks
According to the Central Bank, the number of coins in circulation is is almost 91% and its total weight is only 0.8%. In the total amount of banknotes in circulation, the share of banknotes of 5, 10, 50 and 200 rubles is less than 0.5%.
Vladimir Rozhankovsky, general manager of Trade123, briefed socialbites.ca about the risks associated with returning to paper banknotes.
“If they drop the coins and print a ten-ruble note on it, it’s called a problem. It is not possible to print additional means of payment beyond what is currently in circulation. “It’s called emissions, money emission is very bad because it’s an inflationary procedure as we all understand very well,” he said.
According to him, it is possible to “dispose only a part of the coins and issue notes in their place”. According to Rozhankovsky, then an “expensive” “complete reconfiguration” of the equipment will be required, and this will “take time”.
“But it will have to be eliminated. The emission is a big risk to the economy. The vending machines will also have to be reconfigured, and it’s a very expensive procedure,” says Rozhankovsky.
He noted that vending machines and cars practically do not accept five-ruble, two-ruble coins anymore. The calculation actually starts with a ten-ruble coin, so it should be left out. If you reconfigure all these machines, it can cost “several billion rubles.”
“Losing such money all over Russia is, of course, a luxury that cannot be afforded in the current situation,” said the expert.