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The E-Sylum: Volume 11, Number 13, March 30, 2008, Article 37 WILL RUSSIA ELIMINATE THE KOPECK? [An article published this week by the Russian news agency Novosti implies (but doesn't seem to specifically state) that Russia will cease production of its smallest coin, the kopeck. Here are some excerpts from the article, which focuses more on economics and inflation than coinage. -Editor] The ten-year history of the Russian kopeck has come to an end. Arkady Tkachuk, Director of Goznak Association in charge of printing banknotes, said, "Kopecks cost more than their nominal value and do not return to banks. This is why there is no point in minting them." This verdict and the start of the mass minting of ten ruble coins, which was also announced by Tkachuk, mean that the government has acknowledged its defeat in curbing inflation. The kopeck returned into circulation after the 1997 denomination. But the new Russian coin was different from its Soviet predecessor. A Soviet kopeck could buy a glass of soda water or a box of matches. A Russian kopeck is worth nothing and can buy nothing, but it was not supposed to buy anything. In bringing it back, the then Russian leaders merely wanted it to symbolize the strength of the national currency and the advent of stability in the Russian economy. The appearance of new zeroes on banknotes is not far off - a 5,000-ruble banknote was put into circulation in 2006. Now the printing of a 10,000-ruble banknote is under discussion. In the meantime, the 1997 symbol of stability has become a real burden in the wallets of Russians. People have long stopped taking kopeck change, or bending to pick up a dropped coin. Now, ten years after, Tkachuk said, "Kopecks are mostly used in payments for utilities. If we round these sums, we will save on getting rid from small coins." Withdrawal of kopecks from circulation and replacement of ten-ruble banknotes with coins are justified economically, but they make it abundantly clear that inflation is out of control. To read the complete article, see: Full Story Wayne Homren, Editor The Numismatic Bibliomania Society is a non-profit organization promoting numismatic literature. See our web site at coinbooks.org. To submit items for publication in The E-Sylum, write to the Editor at this address: whomren@coinlibrary.com To subscribe go to: https://my.binhost.com/lists/listinfo/esylum | |
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