Shifting to Euro: New Horizons for Ukraine
The National Bank of Ukraine is considering a shift from the dollar to the euro for its currency policy.
This information was reported by Reuters.
NBU Chairman Andriy Pyshny noted that this decision is driven by the need to strengthen ties with the European Union, fluctuations in global markets, and the potential division of the global economy.
He emphasized that "this task is complex and requires thorough preparation".
Currently, the dollar remains the primary currency for NBU interventions, but the share of euro transactions is "moderately increasing" in various segments.
After the full-scale invasion by Russia in 2022, the NBU fixed the exchange rate at around 29 UAH per dollar, and since October 2023, it has transitioned to a managed exchange rate regime, focusing on the dollar.
Ukraine aims to join the European Union by 2030, while Moldova has already adopted the euro as its reference currency this year.
The NBU forecasts that due to EU integration and gradual recovery, the economy will grow by 3.7–3.9% in the next two years, but further developments depend on the situation in the war.
"A quick end to the conflict would definitely be a positive scenario for the economy, especially if it includes security guarantees for Ukraine," Pyshny stated. He also noted that positive effects "may not be immediate".
This year, Ukraine expects to receive 55 billion dollars in external assistance. In 2026, Pyshny mentioned that 17 billion dollars are anticipated, and in 2027 — 15 billion dollars.
