Ukraine is considering shifting its currency peg from the US dollar to the euro as it reassesses economic alignment amid deepening ties with the European Union and a changing global trade landscape.

In comments to Reuters, National Bank of Ukraine Governor Andriy Pyshnyi said the central bank is examining the potential of referencing the euro for the hryvnia. This marks the first direct acknowledgment from a senior Ukrainian official about such a possible change.

The review comes as Ukraine seeks EU membership amid growing European involvement in the country’s defense. Pyshnyi cited rising global market volatility, the fragmentation of international trade, and geopolitical shifts as drivers behind the reassessment.

“This work is complex and requires high-quality, versatile preparation,” he said.

Ukraine’s hryvnia has historically used the US dollar as its benchmark. Following Russia’s full-scale invasion in 2022, the central bank introduced a fixed exchange rate before shifting to a managed float in October 2023, still using the dollar as the reference for intervention.

The US dollar remains dominant in global reserves and trade, but its status is increasingly scrutinised. Under President Donald Trump, Washington has introduced steep trade tariffs, triggering concerns over the dollar’s long-term reserve role. Ukraine also experienced a brief suspension of military aid under Trump, although a separate agreement gives the US preferential access to Ukraine’s mineral sector.