Russia’s central bank will allow people to swap their existing $1 notes for the new one from July 31.
People will be able to exchange their old bills for the newly minted $1 bill.
The government says the move will ease the nation’s currency volatility.
The central bank has raised the currency’s value against the dollar since late June.
The government has also made it easier to buy and sell Russian currency.
People can now use their existing bills as payment for goods and services in a variety of currencies, including U.S. dollars, euros, yen, Chinese yuan, and Russian rubles.
At the same time, the central bank says it is reducing the country’s $200 bill’s face value by 15%.
The ruble is expected to rise more than 2 percent against the U.K. pound, while the euro is expected rise 2 percent and the dollar by 0.5 percent.
The central bank said it would reduce the value of its foreign currency reserves to $2.6 trillion by the end of July, down from $3.5 trillion at the start of the year.
This move is not without risks.
One problem with using the new bill is that it will be harder for consumers to access foreign currency to purchase food, clothing, and other goods.
And if they cannot access these currencies, the ruble will likely lose value.