Monetary reform in Russia, 1998

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Russia began a monetary reform on January 1, 1998, with preparations starting in August 1997. The change was carried out gradually and was completed by 2002. Ahead of the reform there were ongoing rumors and repeated denials. In June 1996, the head of the Working Center for Economic Reform, Sergei Pavlenko, said the denomination could come only after inflation was permanently suppressed. In September 1996, the head of the Central Bank, Sergei Dubinin, said the reform was premature. On August 4, 1997, President Boris Yeltsin issued a decree to change the face value of the currency and the price scale.

From January 1, 1998, the new rouble was worth 1000 old roubles (from the 1993 and 1995 series). To avoid the painful memory of the 1991 reform, the redenomination was done gradually, continuing until 2002. The large high‑denomination notes and old coins were replaced; the 1000‑old‑rouble note was exchanged for a 1‑new‑rouble coin. The design of banknotes did not change; only the numbers did, with three zeros removed.

Kopeck coins were introduced: 1, 5, 10, and 50 kopecks with the image of St. George, and ruble coins of 1, 2, and 5 roubles showing an eagle. The reform reduced the amount of money needed for everyday payments, made calculations easier, and allowed accounting to be done with and without cash, helping to return to a familiar monetary system.