Banks are reinstalling computer programs. Stores are rewriting price tags. People train in their minds to recalculate the cost of goods using new money. Bonists review the contents of wallets in the hope of finding banknotes in perfect condition. Meanwhile, the current denomination is not the first in the history of our country.
No. 1. The ruble became the ruble
This happened for the first time on August 20, 1994. The essence of that denomination is difficult to explain to the current generation, because the ruble became a ruble, and one hundred rubles (yes, yes, yes) became a hundred. The reason is simple: in 1992, the first Belarusian money appeared - the famous “bunnies”. The series featured animal world of our country from the squirrel (50 kopecks) to the bison (100 rubles). Officially, 1 Belarusian ruble was equal to 10 Soviet rubles. But while the banknotes were being prepared for circulation, prices rose. They decided to inflate the cost of the “bunnies” tenfold: a 1 ruble banknote actually meant 10 rubles. There is still confusion. Especially considering that at this time Belarusians still had Soviet money in their wallets, which were also accepted for payment. During the redenomination, non-existent zeros were simply removed from our rubles.Two years earlier, payment tickets in denominations of 200 and 500 rubles were introduced into circulation. Since we couldn’t find any animals larger than the bison, we printed views of Minsk – Station Square and Victory Square. In 1993, a 1000 ruble banknote with the image of the Academy of Sciences was put into circulation, and in 1994 - 5000 with the Trinity Suburb.
Total: denomination of the ruble by 10 times.
No. 2. Instead of millions - thousands
Another denomination occurred on January 1, 2000. During this time, banknotes were issued in denominations of 20,000 rubles (1994, with the image of the National Bank), 50,000 rubles (1995, with a view of the Brest Fortress), 100,000 (1996, with the image of the Bolshoi Opera and Ballet Theater), 500 000 rubles (1998, Minsk Palace of Culture of Trade Unions), 1,000,000 rubles (1999, National Art Museum). The largest banknote of 5,000,000 rubles was released on September 6, 1999. It was decorated with the Sports Palace in Minsk and the ski jumps of the sports complex in Raubichi.During redenomination, three zeros disappeared from banknotes. The color design of the old banknotes was changed, and at the same time a 10 ruble banknote was issued. It depicted the building that was occupied at that time by the National Library.
Total: denomination of the ruble 1000 times.
No. 3. Hello, penny!
This denomination is scheduled for July 1 of this year. What do we have in stock? In 2001, the National Bank introduced into circulation a banknote of 10,000 rubles (with views of Vitebsk), a year later - a bill of 20,000 rubles with images of the sights of Gomel, a few months later - a banknote of 50,000. It was decorated with the Mir Castle. In 2005, 100,000th banknotes were printed (Radziwill Castle in Nesvizh), and on March 12, 2012, the population received a 200,000th “piece of paper” with an image of the Mogilev Regional Art Museum. All National Bank notes issued since 2001 (the two hundred thousandth note is no exception) refer to the issue of banknotes of the 2000 model, as indicated by the number on the bill.The new denomination will help simplify financial transactions. For the first time in the history of the Belarusian ruble, we will have coins. There will be seven denominations of banknotes - 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. Until December 31 of this year, old money will be accepted for payment on an equal basis with new ones. In a few more years, the population will be given the opportunity to exchange them at a bank. And only from January 1, 2022, our current money will become a full-fledged object of attention for bonuses.
Total: denomination of the ruble by 10,000 times.
TO THE POINT
“Do you often have to count money? Too used to millions? How to live after July 1? Get to know new money in advance using augmented reality technology!” These are the words from the developers of the new mobile application. "Denomination". It is available for Android and IOS users. The principle is simple: you point the camera at one of the current banknotes and get an image of its new counterpart. The application will also automatically calculate the amount in new rubles and convert it into dollars, euros and Russian rubles at the rate of the National Bank. However, the developers clarify, the application does not recognize several bills of the same denomination.
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. During this entire period, the denomination in Belarus became the largest, and the news about the change of banknotes was one of the loudest in history. Lately. 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 along 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 currency 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. Images were used when developing the design architectural monuments. 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.
November 4, Minsk /Tatyana Polezhay - BELTA/. In Belarus from July 1, 2016 denomination will be carried out. As BELTA was informed by the press service of the President of the country, on November 4, Alexander Lukashenko signed decree No. 450 “On the denomination of the official currency of the Republic of Belarus.”
The document decides to carry out from July 1, 2016 denomination of the official monetary unit of the Republic of Belarus and make a replacement until December 31, 2016 circulating banknotes of the 2000 sample in the form of banknotes to banknotes of the 2009 sample in the form of banknotes and coins in the ratio of Br10 thousand in the 2000 sample to Br1 in banknotes of the 2009 sample.
From July 1, 2016, new money will appear in Belarus. What will the new money look like, will people lose their deposits, will loan rates remain the same, will the real sector of the economy suffer - representatives of the National Bank answered these and other questions at a press conference dedicated to the denomination of the Belarusian ruble.
The leadership of the National Bank emphasized that the denomination of the national currency is a purely technical process, which involves the replacement of banknotes of the 2000 model with banknotes of the 2009 model.
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.
Commemorative banknotes issued for circulation by the National Bank, from July 1, 2016, are subject to acceptance for all types of payments without restrictions in the ratio specified above, commemorative and bullion (investment) coins issued for circulation by the National Bank are subject to acceptance at face value for all types of payments no limits.
The decree establishes that 1 Belarusian ruble of the 2009 model is equal to 100 Belarusian kopecks of the 2009 model.
From July 1 to December 31, 2016 banknotes of the 2000 sample and banknotes of the 2009 sample are located in parallel circulation and are required to be accepted for all types of payments without restrictions in the above ratio.
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 January 1, 2020 to December 31, 2021 inclusive– at the National Bank of the Republic of Belarus.
From January 1, 2020 to December 31, 2021 inclusive, old money can be exchanged for new money only at the National Bank. From January 1, 2022, banknotes of the 2000 model will be considered invalid.
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.
The National Bank was instructed to ensure the issuance of banknotes of the 2009 model and the withdrawal of banknotes of the 2000 model from circulation, taking into account the provisions of the decree.
Alexander Lukashenko spoke about the denomination of the Belarusian ruble and what the new money would be like on April 2, 2014, while communicating in Baranovichi with representatives of the workforce of OJSC “558 Aviation Repair Plant”.
Banknotes and coins of the National Bank of the Republic of Belarus, issued for circulation from July 1, 2016.
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.
The history of the Republic of Belarus is rich in important events related to its currency. This includes the introduction of the state’s own money into circulation, hyperinflation, and redenomination. It is worth noting that the measures taken by the government led to a reduction in inflation to minimum values, and in certain periods of 2018 deflation was observed. Let's take a closer look at what kind of money is circulating in Belarus now.
Official currency in 2018
In 2018, the approved name of the currency of the Republic of Belarus is the Belarusian ruble. The monetary unit has been called this way since 1992 after the collapse of the USSR. Its symbol is Br (the letter B means the word “Belarusian”, and the r means “ruble”). Some sources note that initially the government planned to give it a different name - “thaler”. In the international format, the Belarusian ruble is indicated in the form of three capital letters - “BYN”.
Over all the years of its existence, the ruble of the Republic of Belarus has gone through three stages of monetary reform:
- 1994 - 10 times (one zero was removed from banknotes).
- 2000 – 1000 times (three zeros were removed from banknotes).
- 2016 – 10,000 times (4 zeros were removed from banknotes).
Denomination means a process (reform), after the completion of which the nominal value of banknotes - their denomination - changes. In simple words, this is the replacement of old money with new ones, with fewer zeros. The main purpose of this is to stabilize the currency, simplify payments and remove excess money supply.
Denomination is possible only in two cases:
- If a state experiences hyperinflation ( a large number of money made it inconvenient to use).
- The state went through a crisis, after which the economic situation became stable, the inflation rate was no more than 12%, banking institutions provided loans to the population on favorable terms in relation to monetary policy.
As of November 7, 2018 Central bank The Russian Federation has established that for 1 Belarusian ruble you can get 31.11 Russian rubles or 0.47 US dollars (100 BYN = 47.04 $).
In 1992, when the all-Soviet financial system collapsed, the government of the Republic of Belarus introduced first coupons as money, and then NB banknotes. According to the official exchange rate, 1 payment ticket was equal to 10 Soviet rubles. From July 1 of the same year, it became possible to make payments using non-cash Belarusian rubles. In the second half of July 1993, the final process of withdrawing Soviet money from circulation began. And in 1994, the Belarusian ruble was finally approved as the only legal currency that could be used to pay in shops, cafes and other places.
Exchange foreign currency into Belarusian rubles
The Belarusian ruble is non-convertible currency, so it is impossible to purchase it in other countries. But within the state, exchange from any monetary unit is available. To carry out transactions, you must contact the exchange office. As a rule, they are located at airports, railway stations and large shopping centers.
A valid passport is required to exchange money. Receipts or checks issued by exchange office employees must be kept, since border guards will require them to be presented when leaving Belarus.
What has changed since the reform in 2016
On November 4, 2015, Alexander Lukashenko approved and signed decree No. 450 “On the denomination of the official currency.” Based on this paper, in the period from July 1, 2016 to December 31, 2016, a reform should be carried out - the denomination of the Belarusian ruble. The old banknotes, manufactured in 2000, were replaced by paper banknotes and coins of a new type, issued in 2009, in a ratio of 10 thousand to 1. Thus, the banknote with the smallest denomination of 100 rubles was replaced by a coin of 1 kopeck, and 500 new, relative to the denominated ruble, equals 5 million.
Until July 1, 2016, coins were not used in the Republic of Belarus. Until this time, they were issued as commemorative ones, not intended for circulation - they could not be used to pay for services or goods.
Today, banknotes of seven denominations are in circulation in the territory of the Republic of Belarus - 5, 10, 20, 50, 100, 200 and 500 rubles. Metal coins of eight denominations were also used - 1, 2, 5, 10, 20, 50 kopecks and 1 and 2 rubles. Visually, the new banknotes look almost the same as the old ones. Their size is almost identical; images of cities and landmarks are not missing. The only difference is for banknotes with a face value of less than 100 rubles. Now images of animals, including the well-known bunnies, are no longer applied (previously they decorated paper bills in denominations of 1 ruble).
Changes in trade and prices after the 2016 redenomination
Starting from July 1, 2016, price tags in stores, of course, were not completely changed to new ones. Even the government decided at first to indicate two prices for the convenience of citizens. The first is based on monetary units of 2000, and the second is based on the new banknotes issued in 2009. This continued until January 1, 2017, until it was published decree, according to which trade and service enterprises had to indicate the cost only in the new monetary unit.
The redenomination process led many Belarusians and financial experts to think about an increase in prices for commercial products due to a decrease in the number of zeros on banknotes. However, according to official statistics, the inflation rate did not reach the predicted parameter for 2016, that is, 12%. It was recorded at 11.8%, the country's government took various containment measures ().
It should be noted that there were still cases when sellers of vegetables, confectionery and other types of goods hoped for the “effect of small numbers”. That is, if previously 1 unit of goods cost 5 thousand rubles (50 kopecks at new prices), then after the reform it can be sold at twice the price - for 1 ruble. The calculation failed, buyers felt the difference, and the state did its best to stop the rise in prices.
When planning a trip to Belarus, it will be useful to familiarize yourself with the features of the country’s payment system. But this article contains valuable information on this topic not only for guests of the Republic, but also for its residents.
A little history
The Belarusian ruble is a relatively young national currency in Belarus. The monetary unit began its history of formation in the first half of the 90s, when the Soviet Union collapsed, Belarus became isolated, and the country began to need its own money. Since 1992, coupons have been in circulation, but non-cash payment transactions were already carried out in Belarusian rubles. In 1993, there were payment cards, and starting from the end of July of that year, Soviet rubles began to be withdrawn from monetary circulation.
Since 1994, the Belarusian ruble has rightfully acquired the status of the country’s only currency.
Belarusian banknotes of the 1992 model
Belarusian banknotes of the 1994-1999 model
Belarusian banknotes of the 2000 model
Denominations
The formation of the country's modern money was long and, to some extent, thorny. Already in 1994, the Bank of Belarus carried out the first redenomination of the ruble by 10 times. In 2000, the currency underwent a second transformation into nominal value, but already 1000 times.
On July 1, 2016, the country's economy again required redenomination. The ratio was 1:10,000. Another innovation was that from the same time the minting of state coins began.
The ratio of banknotes after denomination in 2016 (money of the Republic of Belarus of the new sample and outdated)
Commemorative coins
Previously, the Belarusian ruble did not have any units of exchange, however, since 1996, the National Bank of the Republic of Belarus has been issuing commemorative coins, which are legal tender and represent a certain value for collectors. Such coins are minted from gold, silver or copper-nickel alloy on various themes.
Modern money of Belarus
Previously, the lack of coins distinguished Belarus from other countries. But this was done in order to save the state budget.
Currently, modern Belarusian rubles (abbreviated “Br”) are represented by:
- banknotes in denominations of 5, 10, 20, 50, 100, 200 and 500 rubles;
- coins in denominations of 1, 2, 5, 10, 20 and 50 kopecks, as well as 1 and 2 rubles.
In this case, 1 ruble is equal to 100 kopecks.
Both coins and paper bills are regulated by the National Bank of the Republic of Belarus.
I am looking for a currency exchange
For both guests and residents of the country, currency exchange is a sensitive and pressing issue. Therefore, we further suggest that you familiarize yourself with the features of the conversion of Belarusian rubles.
Upon arrival
Since the Belarusian currency is not freely convertible, it will not be possible to purchase it before entering the country.
Banks in Belarus easily convert foreign money into national money. You can exchange existing banknotes of other countries for Belarusian rubles at currency exchange offices. Such points are located in bank branches, shopping centers, markets, hotels. You can also convert cash at airports and train stations, but the exchange rate there is very unfavorable, so it’s better not to change money unless absolutely necessary.
It is convenient to quickly analyze exchange rates using special online services that collect up-to-date information from the websites of local banks.
NA note: usually the most favorable currency exchange rates are offered by medium and small banks.
Upon departure
When leaving Belarus, you should take care in advance to transfer money into the currency of the country of arrival. In this case, it is better to be guided by the golden rule: do not put all your eggs in one basket. Namely: take a small part in cash, changing it at the exchanger at the most favorable rate, and transfer the rest to the card. When heading to the countries of the European Union, you should issue a card in euros, to all other countries - in US dollars. In this case, when paying, the conversion will be direct: the local currency will be converted into EUR or USD. But paying with a ruble card abroad is extremely unprofitable due to double conversion: first from local currency– in euros or US dollars, and then – in Belarusian rubles.
On the border
When making any payment transactions on the territory of Belarus, it is important not to forget to keep the stamped checks, indicating the transaction. Perhaps they will be checked at customs.
In addition, since 2013, a value added tax (VAT) refund system has been in place for foreign citizens for purchases made on the territory of Belarus when leaving it. This system is called Tax Free, and about 50 countries are connected to it. It should be taken into account that:
- it does not apply to residents of Belarus, Russia, Kazakhstan, Armenia and Kyrgyzstan;
- the price of goods must be subject to VAT of 20%;
- the purchase amount must exceed 80 Belarusian rubles, and it must be made within 1 day in 1 store;
- refund amount – 12.5% of the purchase amount without commissions;
- when purchasing, you must have a passport and notify the seller of your intention to issue a “VAT refund check” (hereinafter referred to as the “Check”);
- the receipt must be marked with a note about the removal of the goods, with the original cashier's receipt attached and a copy of the seller's receipt;
- provide the goods to customs officers strictly within 3 months from the date of purchase;
- at customs, have unused goods in intact packaging, a passport, a buyer's receipt (with attached receipts);
- within 6 months after export, you must send the original Receipt to RUE Beltamozhservice, indicating the recipient’s bank card details on the envelope (sending is free);
- refund of the VAT amount in the recipient’s currency is made within 30 days from the date of receipt of the letter by employees of RUE “Beltamozhservice”;
- The refund amount can also be paid in cash at a special Tax Freecash Refund point (at the Minsk National Airport).
Bank cards
Among all payment methods in Belarus, the most popular is non-cash payment via bank payment cards.
Of the debit plastic cards in the republic, Visa and MasterCard are most often used; there are also Belcard and Maestro. And from credit cards(more precisely, installment cards: the annual percentage is 0.000001%) the most in demand by the population are “Halva” (MTBank), “Purchase Card” (Belgazprombank), “Smart Card” (Moscow-Minsk Bank), “Magnit” (Belarusbank) , “Turtle” (VTB Bank).
Traveler's checks
Until 2013, when traveling to Belarus, you could use AmericanExpress traveler's checks, which were the only payment system of this type. Today such a payment system does not function in the country.
Electronic payment systems
Convenient and modern electronic payment systems operate in Belarus. Popular Belarusian EPS:
- electronic wallets – EasyPay, WebMoney;
- payment via smartphone – iPay, ;
- payment systems by bank cards – WebPay, bePaid, Assist Belarus;
Tokens and payment cards
Since coins appeared in circulation not so long ago, tokens and payment cards have remained relevant in the country. Where they can be applied and purchased:
- For travel on the subway. Plastic cards and metro tokens are sold at each station.
- Operating payphones are installed on city streets, which are activated via smart cards. You can buy them at newsstands or at supermarket checkouts.
- Vending machines, of which there are few in the republic, accept special tokens for payment, which are also available in newspaper stalls. By the way, the vast majority of vending machines are equipped with coin and bill acceptors, and national currency is accepted for payment.
A couple of decades ago, to the question “What kind of money is there in Belarus?” there was no clear answer. But now there is an active development of not only the Belarusian currency, but also electronic payment systems.
