Ukraine is considering moving away from the U.S. dollar and closer to the euro as a benchmark for the hryvnia, Reuters reported on May 7, citing National Bank Governor Andrii Pyshnyi.
Threats of wide-ranging tariffs by U.S. President Donald Trump have shocked markets and drawn criticism worldwide. Meanwhile, Ukraine is moving closer to the EU as it undergoes accession negotiations with the bloc.
The "strengthening of the EU's role in ensuring our defense capabilities, greater volatility in global markets, and the probability of global trade fragmentation," are all reasons Ukraine is considering the euro over the dollar, Pyshnyi said.
Some European countries that do not use the euro, including Denmark, peg their currencies to the euro using the European exchange rate mechanism as part of the EU's Economic and Monetary Union.
"This work is complex and requires high-quality, versatile preparation," Pyshnyi told Reuters.
On April 9, Prime Minister Denys Shmyhal said Ukraine has fulfilled 81% of its commitments made under the Association Agreement with the European Union.
"Once again, we are demonstrating that we are able to make our way to EU membership quickly and efficiently. This year, we aim to open all six clusters in the EU accession negotiations and deepen sectoral integration," he said.
On April 1, European officials announced the 16.7 million euro ($19 million) Ukraine2EU program to support Ukraine's accession to the EU.
The Kyiv Independent news desk
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