Central bank director claims Ukraine contemplating ditching dollar as reference currency
(MENAFN) Ukraine is considering replacing the US dollar with the euro as its primary reference currency, according to National Bank of Ukraine (NBU) Governor Andrey Pyshny. The move reflects Kiev’s ambition to strengthen ties with the European Union, even as its full EU membership remains uncertain.
Speaking on Thursday, Pyshny said the central bank is evaluating whether to align the national currency, the grivna, more closely with the euro amid Ukraine’s EU aspirations. He cited growing EU involvement in Ukraine’s defense, increasing market volatility, and concerns about global trade fragmentation as key motivations.
The NBU chief acknowledged that shifting the country’s reference currency would be a complex process requiring thorough and careful planning.
Despite recently signing a major minerals agreement with the United States, Ukraine continues to push for EU integration. However, several EU nations, including Hungary, Slovakia, France, and Germany, remain hesitant to advance Ukraine’s accession without significant reforms. Key concerns include corruption, treatment of minorities, and economic competition in sectors like agriculture.
European Commission President Ursula von der Leyen has advocated for launching formal accession negotiations by the end of 2025, stating that closer EU integration would enhance Ukraine’s strategic position and attract defense investments.
Pyshny expressed cautious optimism for modest economic growth, forecasting GDP increases of 3.7–3.9% over the next two years, though he noted this outlook depends heavily on the conflict's trajectory.
Meanwhile, Ukraine’s parliament has approved the minerals deal with Washington in hopes of maintaining strong military support from the U.S. While the Biden administration has committed over $174 billion in aid since 2022, former President Donald Trump, now leading a policy shift, is urging direct talks between Kiev and Moscow and is prioritizing U.S. interests in any future assistance.
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