Core Viewpoint - The Governor of the National Bank of Ukraine, Andriy Pyshnyi, indicated that Ukraine is considering abandoning the US dollar as its reference currency in favor of the euro, driven by increasing ties with Europe and the fragmentation of global trade [1][2]. Group 1: Currency Transition Considerations - Ukraine's potential shift to the euro is influenced by its aspirations for EU membership and the growing role of the EU in enhancing Ukraine's defense capabilities [1][3]. - The euro's share in foreign exchange transactions is gradually increasing, although it remains relatively small compared to the dollar [1][2]. - The transition to the euro is described as complex and requires comprehensive preparation [1][4]. Group 2: Economic Implications - The shift to the euro could significantly reduce transaction costs and exchange rate risks for Ukraine in its European integration efforts [3][4]. - The National Bank of Ukraine has recently moved from a fixed exchange rate to a managed floating exchange rate, still referencing the dollar [2][4]. - Pyshnyi forecasts moderate economic growth for Ukraine in the next two years, estimating a growth rate between 3.7% and 3.9% [5][6]. Group 3: External Financial Support - Ukraine is heavily reliant on external financing, expecting to receive approximately $55 billion in external support this year to cover fiscal deficits and build reserves [6][5]. - Future aid is projected to decrease, with expectations of $17 billion in 2026 and $15 billion in 2027 [6].