Ukraine plans to abandon the dollar and switch to the euro

The head of the National Bank of Ukraine, Andriy Pyshny, told Reuters that the country is considering abandoning the US dollar and switching to the euro. The decision is related to the prospect of joining the European Union, increased cooperation with Europe in the field of defense, instability in global markets and the possibility of fragmentation of international trade.

Pyshny stressed that this process is complex and requires high-quality and comprehensive preparation. Currently, the US dollar dominates in all segments of the Ukrainian foreign exchange market, but he added that the share of transactions carried out in euros is growing in many areas.

Ukraine introduced the hryvnia in 1996 and has adopted the dollar as its main currency since then. After the Russian invasion in 2022, the National Bank fixed the exchange rate against the dollar, and later switched to a managed exchange rate in October 2023.

The rapprochement with the European Union and economic recovery are expected to ensure that the Ukrainian economy grows by 3.7–3.9% in 2025–2026. However, this process will depend on the end of the war and security guarantees.

Moldova’s adoption of the euro as its main currency on January 2, 2025, was a source of inspiration for Ukraine. Ukraine may also choose a similar path. Read 'Zamin' on Telegram!