Ukraine contemplates euro shift amid EU integration efforts
Ukraine is considering moving away from the dollar as its main reference currency in favour of the euro, revealed the President of the National Bank of Ukraine, Andriy Pyshnyy. Reuters reports that this shift could be historic, aligning with the trend of growing integration with the European Union and increasing fragmentation in global trade.
Ukraine might decide to make a significant change in its currency policy—abandoning the US dollar as the primary reference currency and linking the hryvnia to the euro. The President of the National Bank of Ukraine, Andriy Pyshnyy, stated that such a change is being considered in the context of strengthening ties with the European Union, changing the structure of global trade, and the EU's growing importance in Ukraine's security.
Pyshnyy admitted that the decision will not be immediate—it will be a complex process that requires high-quality, multilateral preparations. For now, the dollar still dominates Ukraine's currency system, in both reserves and daily transactions. However, the share of the euro is gradually increasing.
Since 1996, Ukraine's currency—the hryvnia—has traditionally been tied to the dollar. After the outbreak of war in 2022, the hryvnia's exchange rate was temporarily frozen, and it currently operates under a managed exchange rate system, still with the dollar as a reference.
Does Ukraine want to be closer to the European Union?
This change in approach could be part of a broader strategy to strengthen ties with the EU. The European Union is already engaged in accession talks with Ukraine, and the President of the European Commission, Ursula von der Leyen, has mentioned that Kyiv could become a member of the Community by 2030. Moldova, also a candidate for membership, already switched its reference currency from the dollar to the euro in January this year.
Pyshnyy emphasized that linking the hryvnia to the euro could benefit the country, especially 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 war does not escalate.
At the same time, Ukraine still relies on foreign financial support—this year, it expects CAD 74 billion in aid. These funds are intended to assist in covering current state financing and building reserves for the period when the inflow of funds begins to decline. In 2026, Ukraine expects to receive about CAD 23 billion; a year later, CAD 20 billion.
