NBU may change dollar to euro: what it means for the hryvnia exchange rate.

Change of currency exchange rate formation in Ukraine

According to inkorr.com: The National Bank of Ukraine is considering the possibility of changing the base currency used for setting the exchange rate from the dollar to the euro. This initiative is driven by the strengthening of economic and financial ties between Ukraine and the European Union. This was announced by the first deputy chairman of the NBU, Sergey Nikolaychuk, in an interview with Interfax-Ukraine.

'If we talk about the currency forming the exchange rate, then it remains the US dollar for us. At the moment, the focus on it still prevails, despite all these structural changes. At the same time, we are studying this issue, and I think that certain changes should occur when there is a need. Especially in the context of our Euro-integration and the fact that sooner or later we will be forced to translate most of our external indicators into euros,' said Nikolaychuk.

Nikolaychuk noted that since the beginning of the war with Russia, Ukraine has managed to significantly strengthen its trade, economic, and financial ties with the European Union, which is reflected in the changes in the structure of the country's international reserves.

Thus, the National Bank of Ukraine is negotiating a possible transition from the dollar to the euro as the main currency forming the exchange rate. This initiative emphasizes the growing relationship with the European Union and the importance of the Euro-integration process for the country.

By switching to the euro as the currency forming the exchange rate, Ukraine aims to strengthen the stability of its economy and improve integration with the European market. This may also have a positive impact on international financial positions and confidence in the national currency, which is important in the face of modern economic challenges.