The National Bank of Ukraine is examining the possibility of transitioning from a dollar-based economy to one linked to the euro.

According to Reuters,

NBU Chairman Andriy Pyshnyy cited reasons such as closer collaboration with the European Union, instability in global markets, and the potential fragmentation of international trade.

He emphasized that "this task is complex and requires thorough, comprehensive preparation".

Currently, the dollar remains the primary currency for NBU's currency interventions. However, the share of euro transactions is "modestly increasing" across most market segments.

Since the onset of Russia's full-scale invasion in 2022, the NBU has pegged the exchange rate at around 29 UAH per dollar, and from October 2023, it has shifted to a managed exchange rate with a dollar orientation.

Ukraine aims to join the EU by 2030. In a similar move, Moldova has already adopted the euro as its reference currency this year.

The NBU predicts that due to EU integration and gradual recovery, the economy will grow by 3.7% to 3.9% over the next two years. However, future prospects depend on the progression of the war.

"A quick resolution of the war would undoubtedly be a positive scenario for the economy, provided it includes security guarantees for Ukraine," Pyshnyy stated. He also noted that positive effects "may not be immediate".

This year, Ukraine expects to receive $55 billion in foreign aid. In 2026, according to Pyshnyy, $17 billion is anticipated, and in 2027, $15 billion.