Ukraine is contemplating a significant monetary policy shift by considering the euro as a reference currency for its hryvnia, moving away from the longstanding reliance on the U.S. dollar. This deliberation is influenced by Ukraine’s aspirations for European Union membership, enhanced defense collaborations with Europe, and the evolving dynamics of global trade.

Central Bank Governor Andriy Pyshnyi highlighted that the potential EU accession, the EU’s bolstered role in Ukraine’s defense, and the fragmentation of global trade are prompting a review of the euro’s suitability as a reference currency. He emphasized that this transition is complex and necessitates comprehensive preparation.

The U.S. dollar has traditionally dominated international trade and reserves. However, recent U.S. trade policies, including the imposition of substantial tariffs under President Donald Trump’s administration, have led some nations to reconsider their dependence on the dollar. Ukraine’s experience with fluctuating U.S. support during its ongoing

Source: Reuters