The NBU clarified which U.S. dollars should be accepted by banks and exchange offices.

Banks and exchange offices in Ukraine are required to accept all foreign currency banknotes for exchange without exception, provided their authenticity has been confirmed using counters and detectors. Damaged banknotes can also be exchanged, but a fee will apply.

This was reported by RBK-Ukraine citing the press service of NBU.

According to the NBU, banks and non-bank institutions are prohibited from refusing clients the exchange of foreign currency that fully matches the design and security features of the samples and descriptions provided by foreign central banks, and whose authenticity has been confirmed using appropriate equipment.

Additionally, banks and non-bank institutions are forbidden from imposing restrictions based on the denomination and year of issuance of banknotes that are considered legal tender in the corresponding foreign state.

The NBU clarified that banknotes showing signs of significant wear must undergo collection operations. Banks and non-bank institutions conducting such operations must prominently display a clear list of signs indicating significant wear of banknotes and collection fees in a location accessible to clients.

"In cases where there is a refusal to accept currency for exchange that fully matches the design and security features of foreign central banks' samples and whose authenticity has been confirmed using appropriate equipment, consumers can file a complaint with the NBU," the message states.

The Issue of "Old" Dollars

The NBU noted that the topic of exchanging so-called "old" dollars has recently resurfaced in the media.

At the same time, the NBU took several measures in the summer of 2023 to address this issue:

• The regulatory framework was clarified, specifically the list of signs indicating minor wear of foreign currency banknotes was abolished;
• Relevant inspections were conducted, including 150 inspections of exchange points of 17 non-bank financial institutions in 2024, resulting in fines totaling 5.65 million hryvnias imposed by the NBU.

As a result, the number of citizen complaints against banks and non-bank institutions decreased by at least five times. Currently, the NBU receives an average of no more than 10 complaints per month related to refusals or restrictions on the exchange of foreign currency banknotes issued over a year ago.

"This indicates that legal exchange points licensed by the NBU to conduct currency exchange operations do not abuse this area. However, the problem that has resurfaced in the media may lie within the shadow sector, where institutions operate without NBU licenses. The only method to combat such illegal exchange points is to involve law enforcement," the NBU noted.

Worn and Old Dollars

Recall that in May 2023, Ukraine faced the issue of additional fees imposed by banks and exchange offices for accepting allegedly worn dollar bills or notes from previous years of issuance.

The NBU implemented a series of measures to address the problem. Specifically, NBU head Andriy Pyshny stated that the regulator would impose fines and revoke licenses from exchange offices for non-compliance with requirements.

Pyshny asserted that the NBU completely eliminated the human factor by prohibiting banks and non-bank financial institutions from refusing clients the exchange of currency if the counter or detector at the cash register confirmed the authenticity of the banknotes. This means that cashiers cannot assess the authenticity or condition of banknotes "by eye" and refuse to conduct currency exchange operations.

He also stated that it is unacceptable to demand additional fees for exchanging dollars from previous years of issuance.

It should be noted that collection operations can accept banknotes that have been withdrawn from circulation in the countries that issued them or that are significantly damaged. These notes can also be exchanged for foreign banknotes. For example, a damaged 100-dollar bill can be exchanged for an undamaged 100-dollar bill. For accepting banknotes for collection, the client pays a commission fee in hryvnias. Acceptance of foreign currency banknotes for collection is a service that a financial institution may offer but is not obligated to provide.

Both in Ukraine and the United States, dollars issued before 1914 are considered invalid. All issued euros remain legal tender.

In practice, exchange offices in Ukraine accept dollars issued up to 2003 with a fee. Without a fee, this currency can be exchanged at banks.