Ukraine could take a new step towards the European Union. The country plans to replace the dollar with the euro as a benchmark, told Reuters Andrii Pyshnyi, governor of the Ukrainian central bank.
The potential membership of Ukraine to the European Union and the growing role of Europe in the defense of the country within the framework of the conflict with Russia leads the Central Bank to question the need for Replace the US dollar with the euro as a reference currency for Ukrainian Hryvnia. “This work is complex And requires a neat and flexible preparation, “said the governor.
This possible change is also motivated by the recent trade war launched by US President Donald Trump. The latter started customs duties raised against most of the United States’s business partners.
To this end, some observers question the future role and Dollar stability as a global reserve currency.
In addition, Donald Trump temporarily interrupted part of the military aid dedicated to Ukraine to cope with the Russian invasion. In return, the European Union has strengthened its military and financial commitment to kyiv, becoming its main support against Moscow.
A rapprochement with the EU
And although Ukraine and the United States have signed an agreement granting Washington a privileged access to new transactions on Ukrainian minerals, since the start of Donald Trump’s second term in the White House, The dollar dropped by more than 9% Compared to a basket of reference currencies. The American currency is no longer a refuge in the event of a crisis.
-It is this volatile aspect and the rapprochement with the European Union which today push Ukraine to adopt the euro as a reference currency.
“Closer links with Europe could help Ukraine ‘economic growth straightened slightly over the next two years,” said Andrii Pyshnyi.
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