London May 8 2025: Ukraine is starting to consider a shift away from the U.S. dollar, possibly linking its currency more closely to the euro amid the splintering of global trade and its growing ties to Europe, Central Bank Governor Andriy Pyshnyi told Reuters.
Potential accession to the European Union, a “strengthening of the EU’s role in ensuring our defense capabilities, greater volatility in global markets, and the probability of global-trade fragmentation,” are forcing the central bank to review whether the euro should be the reference currency for Ukraine’s hryvnia instead of the dollar, Pyshnyi said in emailed remarks.
“This work is complex and requires high-quality, versatile preparation,” Pyshnyi added, in the most direct comments by a Ukrainian official on a possible shift.
The dollar dominates international trade and accounts for the majority of global reserves, opens new tab. Major economies including Saudi Arabia and Hong Kong peg their currencies to the dollar.
But under President Donald Trump, the U.S. has unleashed a trade war by introducing what could be the highest tariffs in a century, a move that has prompted some observers to question the future role of the dollar as global reserve currency.
