FX.co ★ Ukraine Mulls Euro Shift Amid Closer EU Ties

Ukraine is contemplating switching its reference currency from the U.S. dollar to the euro, reflecting its strengthening economic connections with Europe and the increasing fragmentation in global trade, according to Central Bank Governor Andriy Pyshnyi in a statement to Reuters. He highlighted Ukraine’s aspirations to join the EU, the European Union's expanding role in defense, and market instability as key factors prompting a reevaluation of the dollar peg. In October 2023, the central bank adopted a managed exchange rate system.