Ukraine is considering a shift in its currency benchmark from the U.S. dollar to the euro, reflecting deeper ties with Europe and rising volatility in global markets, according to Central Bank Governor Andriy Pyshnyi. In a written statement to Reuters, Pyshnyi said the National Bank of Ukraine is reviewing whether the euro should replace the dollar as the reference currency for the hryvnia, a potential move linked to the country's future in the European Union and broader global realignments.
"This work is complex and requires high-quality, versatile preparation," Pyshnyi stated. He cited Ukraine's EU membership bid, the bloc's role in supporting Kyiv's defense capabilities, and a fragmented global trade environment as factors driving the central bank's reassessment.
Ukraine launched the hryvnia in 1996 and has long used the U.S. dollar as its reference currency. Following Russia's full-scale invasion in 2022, the central bank imposed capital controls and fixed the hryvnia to the dollar at a rate of about 29. That peg was eventually replaced in October 2023 with a managed exchange-rate system that still uses the dollar as the primary benchmark for intervention.
While the dollar remains dominant in international trade and foreign exchange markets, Pyshnyi noted that euro-denominated transactions are rising, though "so far moderately." He stopped short of providing specific figures.
The U.S. dollar has weakened more than 9% against a basket of major currencies since President Donald Trump returned to office. His administration's trade policies, including historic tariffs, have raised questions about the future global role of the dollar. Trump has also briefly paused some military aid to Ukraine, further complicating Kyiv's reliance on Washington.
In contrast, the EU has accelerated steps to support Ukraine's security and economy. The bloc opened membership negotiations with Kyiv and Moldova nearly a year ago. European Commission President Ursula von der Leyen said in February that Ukraine could join the EU by 2030 if reforms continue apace. Moldova has already moved its currency benchmark from the dollar to the euro as part of its accession process.
Ukraine's economy, heavily reliant on external financing, is projected to receive $55 billion in aid this year, Pyshnyi said. He expects that figure to fall to $17 billion in 2026 and $15 billion in 2027, prompting the government to begin building fiscal reserves.
