157
Ukraine considers shift from dollar to euro amid geopolitical realignments (www.reuters.com)
submitted 1 year ago by to c/ukraine@sopuli.xyz
7 comments fedilink hide all child comments
 

cross-posted from: https://sh.itjust.works/post/37536459

Exclusive: Ukraine considers shift from dollar to euro amid geopolitical realignments

Ukraine is starting to consider a shift away from the U.S. dollar, possibly linking its currency more closely to the euro amid the splintering of global trade and its growing ties to Europe, Central Bank Governor Andriy Pyshnyi told Reuters.

Potential accession to the European Union, a "strengthening of the EU's role in ensuring our defense capabilities, greater volatility in global markets, and the probability of global-trade fragmentation," are forcing the central bank to review whether the euro should be the reference currency for Ukraine's hryvnia instead of the dollar, Pyshnyi said in emailed remarks.

all 7 comments

sorted by: hot top controversial new old
[–] 23 points 1 year ago (5 children)

For Ukraine, that just makes sense. Most of Ukraines trade is with countries using the Euro. They are in Europe and actually border the Eurozone with Slovakia. Romania is working hard on adopting the Euro too. Obviously Poland and Hungary also have to adopt the Euro at some point, as they are EU members without an opt out. Ukraine wants to join the EU, so it has to also agree to adopting the Euro at some point.

  • permalink
  • fedilink
  • source
  • hideshow 5 child comments
    •
  • [–] 4 points 1 year ago

    If you live in a middle of nowhere country the dollar makes sense. Sure the US has some issues, but there is no reason the EU couldn't have similar or worse issues in the future and so you can debate what the future will really be. However Ukraine isn't middle of nowhere, it is middle of Europe and the Euro is too important to that part of the world to ignore.

  • permalink
  • fedilink
  • source
  • parent
  • [–] [S] 4 points 1 year ago (3 children)

    While I have not lived or visited Poland, I do have relatives there. From their words Polish society isn't exactly enthusiastic about adopting the euro.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 3 child comments
    •
  • [–] 2 points 1 year ago (1 child)

    It's become a lot more popular since covid, it was unpopular during the greek crisis and there was some concern when the dollar was stronger (and Germany lost Russian gas) but since Trump people are looking hard at the value of European stability and the euro is pleasantly boring right now.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 1 child comment
    •
    • [–] 6 points 1 year ago*

    I think California should also do this.

  • permalink
  • fedilink
  • source
    •