Ukraine Considers Tying Currency to Euro Amid Global Trade Shifts

Ukraine is contemplating a shift from the U.S. dollar to possibly linking its currency to the euro, as global trade dynamics evolve. Central Bank Governor Andriy Pyshnyi cites EU ambitions and geopolitical shifts as key factors. The decision reflects broader trends of rethinking trade and security alignments.

Ukraine is evaluating a potential shift away from the U.S. dollar to align more closely with the euro, Central Bank Governor Andriy Pyshnyi told Reuters. This move comes amid global trade fragmentation and Ukraine's growing ties to Europe, including potential EU accession.

Pyshnyi highlighted the complexity of this strategic decision, initially introduced by the central bank's oversight board in February 2024. The dollar currently dominates global reserves, but recent geopolitical tensions and economic shifts have prompted some to question its future role.

Ukraine's consideration to shift toward the euro aligns with its broader geopolitical and economic strategies. Meanwhile, the country struck deals for preferential U.S. access to its minerals and anticipates external financing to support its budget amid ongoing conflict.

(With inputs from agencies.)