Ukraine may switch from dollar to euro as global alliances shift

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Ukraine may shift its currency anchor from the U.S. dollar to the euro amid growing ties with Europe and global trade fragmentation, Central Bank Governor Andriy Pyshnyi said.

“Potential EU accession and volatility in global markets” are among factors prompting the review, he told Reuters. “This work is complex and requires high-quality, versatile preparation,” he added.

The hryvnia, launched in 1996, currently uses the dollar as its reference. Since Russia’s 2022 invasion, Ukraine has shifted from a fixed to a managed exchange-rate regime.

Pyshnyi noted rising euro-based transactions, though still moderate. He expects $55 billion in external financing this year and predicts $17 billion and $15 billion in 2026 and 2027 respectively.

“A quick end to the war would clearly be a positive scenario,” he said, but warned that benefits “would likely take time to fully materialize.”

READ MORE AT REUTERS

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