Ukraine is beginning to consider the possibility of abandoning the peg of the national currency to the US dollar and moving to the euro. The reason for this is changes in global trade and increased cooperation with European countries. This was stated by the Chairman of the National Bank of Ukraine, Andriy Pishnyi. informs Reuters.
According to Andrii Pyshnyi, Ukraine’s potential membership in the European Union, “the strengthening of the EU’s role in ensuring our defense capability, greater volatility in world markets and the possibility of fragmentation of world trade” are factors that prompt the National Bank to analyze the question of whether the euro should become the main reserve currency for the hryvnia instead of the dollar.
“This work is difficult and requires high-quality, versatile training,” Pyshnyi emphasized.
He noted that although transactions with the US dollar currently remain dominant in all segments of the foreign exchange market, there is an increase in the share of transactions denominated in euros, albeit “moderately so far.”
Currently, the US dollar continues to play a leading role in world trade and constitutes the main part of international reserves. The currencies of economies such as Saudi Arabia and Hong Kong are pegged specifically to the dollar. However, under Donald Trump’s presidency, the US has launched a trade war, imposing what are likely to be the highest tariffs in a century. This has led some experts to question the long-term status of the dollar as a global reserve currency.
