Increasingly, Ukrainians face the problem of foreign currency exchange.
“The bill is worn” “too old” “there is a barely noticeable spot on it, we do not accept it”
Perhaps everyone who has changed currency has heard something similar?
Let’s highlight two key problems: the first occurs when foreign banknotes with signs of significant wear or damage are exchanged, the second – banknotes from ancient years of issue.
In fact, a different demand for dollars has formed in Ukraine. First of all, Ukrainians themselves want to buy new, undamaged bills, rejecting older and damaged ones.
Obviously, it is much more difficult for banks and exchangers to sell such bills to customers, so they are less willing to buy these dollars, and sometimes charge commissions or discounts on them.
The majority of Ukrainians perceive the purchase of foreign currency as an investment, so people want the object of their investment to be in good condition, so that they look as if they were just taken out from under the printing press.
Although for most of the world, cash dollars are nothing more than just money that is only needed for payments.
This attitude of Ukrainians to the currency could shape the peculiarities of the demand for banknotes, and it happened a long time ago.
Yes, some exchange offices refuse to accept dollars from old years of issue (1996 or 2001), banknotes with slight wear, damage, traces of seals or paint spots.
They argue that the exchange office will not be able to sell such dollars to the population at the market rate.
Are such actions legal?
Absolutely not!
Banks and exchange offices do not have the right to set additional rates or discounts for old or worn dollar bills, as well as markups for new ones.
They are obliged to accept foreign currency payment banknotes with minor signs of wear and tear, specified in NBU Resolution No. 1 dated January 2, 2019 and NBU Resolution No. 103 dated September 25, 2018.
Foreign currency banknotes are recognized as payable in case of full compliance with the samples established by the issuing bank, if they have retained the signs of payment, namely:
• name of the issuing bank,
• number and series,
• denomination in numbers and words,
• main images of the front and back sides,
• protection elements – watermark, magnetic labels, protective tape and fibers, micro- and macro-texts, hologram,
Banks and exchangers are obliged to accept banknotes with minor signs of wear:
• local abrasions (partial loss of paint on images) and/or loss of paper stiffness;
• imprints of stamps/seals, inscriptions, including those visible in ultraviolet rays, the total area of which does not exceed 200 square mm;
• spots, the total number of which does not exceed three pieces with a diameter of up to 5 mm each;
• tears or incisions, the total number of which does not exceed three pieces up to 3 mm in length each;
• holes and punctures, the total number of which does not exceed four pieces with a diameter of no more than 1 mm each.
Banknotes that show signs of heavy wear or more significant damage may be accepted by banks as part of a collection operation.
Collection operations concern banknotes that:
• torn (cut) into parts;
• with damaged elements of design and protection (deleted digital or text designations of the denomination, portrait images, optically changeable protection elements, protective tapes);
• with a changed original color of paper and/or images;
• with local pollution (spots), including those visible in ultraviolet rays, the total area of which exceeds half of the banknote area;
• with general impurities, including those that cause paper luminescence in ultraviolet rays;
• burned, charred, rotten (damaged due to prolonged exposure to moisture, liquids, chemicals or with signs of decay);
• have obvious typographical defects.
The collection operation involves a person receiving compensation for a damaged banknote. For its implementation, you should write a statement. The bank then sends the damaged banknotes to its foreign correspondent bank, which sends compensation.
What to do if old banknotes are not accepted
You can’t just turn a blind eye, this is a violation of the law and your rights, every such case should be reported to the National Bank via this link (https://bank.gov.ua/ua/consumer-protection/citizens-appeals)
Applications can also be made in the contact center of the regulator (https://bank.gov.ua/ua/contacts)
Therefore, if the next time you hear a refusal, insist, ask for a written refusal and notify the competent authorities.
