Ukraine contemplates Euro adoption amid closer EU ties
Ukraine is considering abandoning 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 is potentially a historic shift, aligning with the trend of growing integration with the European Union and deepening fragmentation in global trade.
Ukraine might decide to make a significant change in its currency policy—abandoning the US dollar as the main 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 acknowledged that the decision will not be immediate— it will be a complex process that requires high-quality, multilateral preparations. 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 the 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 get closer to the EU. The European Union is already holding 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 changed its reference currency from the dollar to the euro in January of this year.
Pyshnyy emphasised that linking the hryvnia to the euro could bring benefits, especially if there is a revival in investment and consumption. The central bank forecasts moderate economic growth of 3.7–3.9 per cent 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 approximately £45 billion in aid. These funds are intended to assist in current state financing and building reserves for the period when the inflow of funds begins to decline. In 2026, Ukraine expects to receive about £14 billion a year, £12 billion.
