Ukraine is weighing a move to adopt the euro as its reference currency in place of the U.S. dollar, as the country deepens economic and political integration with Europe, according to Central Bank Governor Andriy Pyshnyi in an interview with Reuters.

The shift, still under evaluation, reflects Kyiv’s growing alignment with the European Union and comes as Ukraine enters its fourth year of war following Russia’s 2022 invasion. While U.S. military aid has fluctuated—most notably under President Donald Trump—European nations have signaled long-term commitments to Ukraine’s defense and reconstruction.

Although dollar-based transactions still dominate Ukraine’s foreign exchange markets, Pyshnyi noted that euro-denominated operations are gradually increasing. He did not specify a timeline or provide further details on the possible transition.

The U.S. dollar has traditionally served as Ukraine’s benchmark currency since the introduction of the hryvnia in 1996. That role continued through wartime capital controls and a fixed exchange rate, which was loosened in 2023 when the National Bank of Ukraine adopted a managed exchange rate system—still using the dollar as its primary guide.

The euro’s appeal has grown in part due to the declining strength of the dollar, which has dropped over 9% against major currencies since Trump returned to office. The shift has prompted some global investors to reduce their exposure to U.S. assets.

Meanwhile, Ukraine has signed agreements granting the U.S. preferential access to its mineral resources and postwar investment projects, suggesting that Kyiv is still seeking to balance its Western partnerships even as it explores reorienting its currency framework toward Europe.