NBU announces Ukraine's likely rejection of dollar - head of financial regulator tells media what will happen to currency

Ukraine must switch to a new exchange rate-forming currency: the dollar will be replaced by the euro. However, this is not a matter of one day or even one year. But even after such a replacement, citizens who keep their savings in dollars can be sure: nothing will change for them.

This was stated in an interview with rbc.ua by the head of the National Bank of Ukraine (NBU), Andrii Pyshnyi.

Since Ukraine is moving towards membership in the European Union, sooner or later the euro will become the main exchange rate-forming currency in our country instead of the dollar. However, such decisions are not made instantly. They are preceded by a long analysis of the economic situation, including the situation on the financial market.

That is, for Ukraine, such a transition will stretch for years, and possibly decades.

At the same time, the National Bank is already constantly monitoring the situation on the market, studying the popularity of the main currencies among Ukrainians. As it turned out, the popularity of the euro currency in Ukraine is growing. However, the dollar's position remains strong as before.

So, in the question of the main exchange rate-forming currency, the NBU proceeds from the principles of stability and the real needs of the economy. And so far, everything in Ukrainian business is tied to the dollar. At the same time, there is no and cannot be any bias towards the euro in the NBU.

"If it is necessary to do this, we will make this decision, and you will not even feel it. We do not have an exchange rate peg, it was until October 2023. So, in essence, the question is only in the exchange rate-forming currency. To put it more simply, to which currency is the official hryvnia exchange rate calculated initially and to which currency can the NBU's interventions smooth out exchange rate fluctuations," Pyshnyi shared.

According to the head of the National Bank, the transition to another exchange rate-forming currency is a purely technical issue that should not concern the general public at all.

Nothing will change for ordinary Ukrainians. Even if they keep their savings in dollars, there is no need to run to exchange them for euros. The dollar, as before, will be freely convertible under any circumstances and freely used in all settlements of citizens and businesses.

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