“Ukraine is considering abandoning the U.S. dollar and pegging its currency to the euro,” – says the head of the National Bank of Ukraine

Ukraine is considering moving away from the U.S. dollar and more closely aligning its currency with the euro “amid the fragmentation of global trade and growing ties with Europe.”

This was reported by Reuters, citing Andriy Pyshnyy, head of the National Bank of Ukraine (NBU).

“The increasing role of the EU in supporting our defense capabilities, greater volatility in global markets, and the likelihood of fragmented global trade” are prompting the central bank to reconsider whether the euro should become the primary anchor currency for the Ukrainian hryvnia, instead of the U.S. dollar, Pyshnyy said.

He noted that while U.S. dollar-based operations still dominate Ukraine’s foreign exchange market, the share of euro-denominated transactions is growing in most segments—albeit “moderately so” for now.

Previously, it was reported that several Asian countries had also started reducing their reliance on the U.S. dollar, largely in response to tariffs imposed by former U.S. President Donald Trump.

“Trump’s policies weakened market confidence in the returns of U.S. dollar-based assets,” financial analyst Gary Ng told Reuters.

One of the strongest-performing regional currencies has been the Taiwanese dollar, which has appreciated by 10.6%.

As a reminder, U.S. Federal Reserve Chair Jerome Powell stated that the tariff levels introduced under the Trump administration were significantly higher than expected, and warned that the consequences would include higher inflation and slower economic growth in the U.S.