Ukraine considers the euro as a new anchor amid its EU integration push
According to Andriy Pyshnyy, the president of the National Bank of Ukraine, Ukraine is considering moving away from the dollar as its main reference currency in favor of the euro. Reuters reports that this potential shift aligns with Ukraine's growing integration with the European Union and the increasing fragmentation of global trade.
Ukraine may significantly change its currency policy by replacing the US dollar with the euro as the main reference for the hryvnia. Andriy Pyshnyy noted that this change is being considered in the context of strengthening ties with the European Union, shifts in the structure of global trade, and the EU's growing role in Ukraine's security.
Pyshnyy acknowledged that the decision will not happen immediately—it will require a complex process involving high-quality, multilateral preparations. The dollar still holds a dominant position in Ukraine's currency system, both in reserves and daily transactions. However, the use of the euro is gradually increasing.
Since 1996, Ukraine, with its currency, the hryvnia, has traditionally been tied to the dollar. After the war broke out in 2022, the hryvnia's exchange rate was temporarily frozen and now operates under a managed exchange rate system, still using the dollar as a reference.
Does Ukraine want closer ties with the European Union?
This change in currency approach could be part of a broader strategy to strengthen ties with the EU. The European Union is currently holding accession talks with Ukraine. European Commission President Ursula von der Leyen has mentioned that Kyiv could become a member of the European Union by 2030. Moldova, also a candidate for EU membership, switched its reference currency from the dollar to the euro in January of this year.
Pyshnyy emphasized that linking the hryvnia to the euro could bring significant benefits, particularly if investment and consumption revive. The central bank forecasts moderate economic growth of 3.7–3.9 percent over the next two years, assuming the conflict does not escalate further.
Meanwhile, Ukraine continues to rely on foreign financial support, expecting 55 billion dollars in aid this year. These funds are not only intended for current state financing but also for building reserves for the future when the inflow of funds begins to decrease. In 2026, Ukraine anticipates receiving about 17 billion dollars, and a year later, 15 billion.
