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Ukraine’s central bank is considering a pivot from the US dollar to the euro as its currency reference, the bank’s governor told Reuters.
The potential shift comes amid Ukraine’s EU accession process and changes in its security relationships, Central Bank Governor Andriy Pyshnyi told Reuters in emailed remarks.
“This work is complex and requires high-quality, versatile preparation,” Pyshnyi said, in what appears to be the clearest indication yet of Ukraine’s possible currency realignment.
The dollar currently dominates global reserves and international trade, with major economies including Saudi Arabia and Hong Kong maintaining currency pegs to the greenback.
However, the landscape is shifting. US tariff policies under President Donald Trump have prompted questions about the dollar’s future as the global reserve currency. Ukraine has also experienced temporary cuts in US military assistance during its ongoing conflict with Russia.
Meanwhile, European leaders have pledged to strengthen Kyiv’s military capabilities, though progress has been challenging. Ukraine also recently secured an agreement giving the United States preferential access to Ukrainian mineral deals to fund reconstruction efforts.
Since Trump’s return to office, the dollar has fallen more than 9% against major currencies as investors reduce US asset holdings.
Ukraine introduced the hryvnia in 1996, traditionally using the dollar as its reference currency. Following Russia’s 2022 invasion, the central bank imposed capital controls and established a dollar peg, before moving to a managed exchange rate regime in October 2023.
Moldova, also pursuing EU membership, switched its reference currency from the dollar to the euro in January.
Pyshnyi projected moderate economic growth of 3.7-3.9% over the next two years, though he acknowledged outcomes depend heavily on the war’s progression. He expects Ukraine to receive approximately $55 billion in external financing this year, with aid likely declining to $17 billion in 2026 and $15 billion in 2027.
(Source: Reuters)
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Ukraine considers shifting currency reference from dollar to euro – Reuters – Philenews
