NBU studying issue of switching to euro, but dollar remains exchange rate-forming currency for Ukraine
The National Bank of Ukraine (NBU) currently retains the US dollar as the main exchange rate-forming currency, but is studying the issue of possible changes in connection with the strengthening of economic and financial ties with the European Union, First Deputy Governor of the NBU Serhiy Nikolaychuk said in an interview with the Interfax-Ukraine agency.
"If we talk about the exchange rate-forming currency, then the US dollar remains our exchange rate-forming currency. Today, 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 necessary," he said.
"Especially in the context of our European integration and the fact that sooner or later we will be forced to translate most of our external indicators into euros," the banker added.
According to him, historically in Ukraine the focus on the hryvnia-dollar exchange rate has always been much stronger than on the euro, at the same time, since the beginning of the full-scale war, trade, economic, and financial ties with the European Union have significantly strengthened: most of the imports come from the EU and other European countries, and international aid, especially during this and last years, comes primarily in euros.
"This factor also causes changes in the structure of our international reserves, since the funds that the government accumulates in its euro accounts are also included in them," the central bank representative noted.
Nikolaychuk noted that in recent years the NBU has already begun to make the first changes - to publish the balance of payments and international reserves not only in dollars, but also in euros and hryvnia, to show reserves in euros.
"That is, we are actively studying the issue, but I cannot yet say that we have a clear plan, that tomorrow or by the end of the year we plan to change the exchange rate-forming currency. I will add that the exchange rate-forming currency should be one, while it is the dollar," the banker concluded.
He also drew attention to the fact that the weakening of the dollar on the international market this year has partially increased the competitiveness of Ukrainian exporters.
At the same time, as Nikolaychuk noted, no significant impact on the trade balance from changes in exchange rates is expected.
As reported, as of August 1 this year, the share of dollar assets in reserves decreased to 73.5% from 77.9% a month ago, 82.7% two months ago, and 89.9% a year ago. At the same time, the share of the euro increased to 17.5% from 13.9% in early July and from 10.1% in early June this year and 2.5% a year ago.