Ukrainians complain about Privatbank issuing old currency. How will the problem be solved?

Complaints from citizens about bad currency notes from Privatbank have become more frequent on financial forums.

People report that the state bank offers them worn-out money, which they then do not want to exchange for hryvnia or credit to the accounts of other financial institutions (banks and non-bank exchangers).

Back in mid-summer, Ukrainians called two types of banknotes “bad currency.” The first is old, so-called white, dollars issued in 1996 without damage. They might not be worn out and even crispy in a new way, but they didn’t want to take them because of the year of manufacture. There were fears that they would no longer be accepted and recognized. Everyone needs blue dollars, which the Fed presented in 2010 and actively saturated money circulation with them. However, our National Bank quickly clarified that no one has canceled the old dollar and everyone is obliged to accept it. And then it became an order - all financial institutions were obliged to accept the old, undamaged (not dilapidated) dollar, with penalties for those who would not do this. Therefore, the attitude towards the white “American” began to change for the better: banks accept them without restrictions and additional commissions.

The second category of “bad currency” is damaged, worn, torn, erased banknotes, with seals and inscriptions. According to current legislation, they are classified as dilapidated. In fact, less than a dozen Ukrainian banks accept them, and most financial institutions refuse them because they cannot take them abroad for exchange. And those who take it apply considerable commissions - from 10% (Raiffeisen Bank) to 50% of the amount (MTB Bank).

The increase in complaints from Privatbank clients in September is associated with the second category - namely, with old banknotes. People claim that by hook or by crook they are trying to sell them unusable money. And not only during currency exchange - the purchase of cash foreign currency. But also when issuing foreign transfers and funds from accounts, within the limits of the National Bank’s restrictions (up to the equivalent of 100 thousand UAH per day) and after the person has previously submitted an application - ordered the required amount in advance.

This is stated in a message from a Kiev resident who complained about the Privat branch on the street. Kibalchich, and said that the cashier wanted to give him a worn dollar with yellow spots. “I have never seen dollars in such a terrible condition in any bank. The cashier replied that she had no others,” he noted.

A similar story was told by a resident of Dnepr, who was not happy that he could not withdraw “normal clean dollars” from his card account for 3 whole months.

“I have ordered cash dozens of times to different branches in the city of Dnepr, and all the time they arrive worn, torn, with stains and stamps,” he emphasized.

He was supported by a person who said that he also regularly visits Privat branches, and in 4 weeks he has not managed to receive adequate currency there. Moreover, currency banknotes are recognized as unusable not only by the client, but also by PrivatBank employees, who publicly admit that bad currency has arrived again, but another one has not. This is a very important point, because the excuse that this person is finding fault with a good dollar/euro does not work. No. The bankers themselves talk about low-quality currency, which they still offer to clients, although this is prohibited by the National Bank.

“I make a cash order, arrive on a certain day, and at the cash register they say: “Sorry, we received bad currency,” they show that it is really bad, all drawn and stamped, etc. I have encountered this issue 4 times in the last 4 weeks,” the customer’s complaint states.

However, Privatbank employees recognize the dilapidation of the foreign currency issued to clients only in personal communication with people in the branches. But in the official response to the complaint they say the opposite - that they work with normal dollars/euro. They don't even try to please customers. The approach to people in the state bank is similar to blackmail: if you don’t like something about the banknotes, you don’t have to take them. No one promises to provide other cash, although a person can only have an account in this bank.

“Privatbank issues currency for individuals in accordance with the current requirements of the NBU. All banknotes without signs of counterfeiting or significant damage are suitable for both purchase and sale transactions, without restrictions on the year of issue of foreign currency banknotes and their denomination. We also note that pre-checked banknotes are issued at the Bank branch; accordingly, payment bills are offered at the time of issuance. All banks work with new and old dollars. If you are dissatisfied with the condition of the bill, you can refuse to accept it,” says the official response from Privatbank.

At the same time, Privat still does not have a service where you can hand over your old dollar/euro. It is called accepting banknotes for collection. At the end of the summer, another government agency launched it - Oschadbank for 20% of the amount, but Privatbank never implemented it, although there was a rumor about a launch in August.

A Strana source in Privat said that collection will be introduced there by the end of September, after which a gradual solution to the problem is expected. The size of the future commission has not yet been announced; the name of the state bank’s partner, who will begin exporting old foreign currency abroad and importing new ones in return, is also kept secret. But it is known for sure that the state bank itself will not handle the shipment.

It would seem that Privatbank should not have a large volume of old dollars/euro if it does not accept it from clients for collection. However, they say that the bank managed to accumulate bad currency not through cash desks, but through terminals.

“This is not the first month that the population has had problems with the exchange of old dollars and huge commissions. Therefore, resourceful citizens actively replenished their currency cards in Privat with such cash while it was possible (the service was suspended and reconfigured). For a long time, this could be done through payment terminals, which are found in almost every Ukrainian store; these devices did not recognize worn-out currency and accepted it on an equal basis with normal currency. The people have poured a huge amount of worthless banknotes into the bank, they are not exported, so the state bank is now trying by hook or by crook to sell them through the cash registers,” admitted a Strana source in Privatbank.

Not only Privat, but also most other financial institutions have problems with the export of old foreign currency. This is confirmed by the official data of the National Bank on the volume of export of foreign banknotes from Ukraine, which has greatly decreased since the beginning of the war: in January-July 2022, the entire banking system exported all currencies in the equivalent of $441 million, and in January-July 2023 - only $387 in total million. While during the same period of pre-war 2021, many times more was sent abroad - $1.5 billion. Banks do not want to do this due to the closure of the sky, difficulties with logistics and security.