Core Viewpoint - The National Bank of Ukraine is considering a shift from the US dollar to the euro as a reference currency for the hryvnia due to increasing ties with Europe and global trade fragmentation [1][3]. Group 1: Currency and Economic Policy - The Governor of the National Bank of Ukraine, Andriy Pyshnyi, indicated that the strengthening role of the EU in Ukraine's defense and the volatility in global markets are prompting a reassessment of the reference currency for the hryvnia [1]. - The euro's trading share has been gradually increasing in various sectors, although the rise has been modest so far [3]. - Ukraine has historically used the US dollar as a reference currency since the introduction of the hryvnia in 1996, but the ongoing conflict has led to significant economic challenges, including a forced devaluation of the hryvnia [3][4]. Group 2: Economic Outlook - The transition to a managed floating exchange rate system in October 2023 is based on the US dollar, which is used to measure foreign exchange interventions [4]. - Economic recovery in Ukraine is projected to accelerate to a growth rate of 3.7-3.9% over the next two years, driven by closer ties with Europe and a revival in investment and consumption activities [4]. - The National Bank of Ukraine anticipates receiving $55 billion in external financing this year to cover budget deficits and reserve public finances for the coming years, as future aid amounts may decline [4].