Ukraine Quietly Shifts Trade from Dollars to Euros

It’s clear in everything from rental advertisements to foreign trade news—Ukraine is replacing the USD with the Euro. For several reasons, Ukraine is gradually breaking up with the dollar. Over the past year, a subtle but decisive shift has unfolded in the country’s trade: euros are replacing U.S. dollars as the preferred currency.

According to the National Bank of Ukraine, the share of euros in Ukrainian exports and imports has grown steadily. In the first quarter of 2024, 36% of export contracts were settled in euros—up from 26% just a year earlier. For imports, the share has reached 43%.

Now, Ukraine is considering taking the next step: shifting its official reference currency from the U.S. dollar to the euro. Central Bank Governor Andriy Pyshnyi confirmed that the National Bank is reviewing this possibility as part of a broader reevaluation of the country’s financial orientation in light of geopolitical changes.

Behind the shift is a convergence of economic necessity and political will. The war has deepened Ukraine’s integration with the European Union. The EU is now Ukraine’s largest trading partner, and membership talks are already underway. Switching to euro settlements makes financial operations smoother and lowers currency risk for businesses operating in both directions.

This is not just an economic adjustment—it’s a strategic realignment. The dominance of the U.S. dollar in global trade has already come under scrutiny in recent years, and the war has only accelerated global currency fragmentation. In 2023, Ukraine moved away from its longstanding dollar peg, adopting a managed exchange-rate regime. The euro now offers a more relevant and practical anchor, especially as the country reorients itself economically toward Europe.

Ukraine isn’t alone. Moldova has already shifted its reference currency to the euro, and other post-Soviet states may follow as Russia’s financial system becomes increasingly toxic and isolated.

While the U.S. remains a critical partner in defense and aid, Ukraine’s financial future is visibly European. The euro is becoming not just the currency of contracts—but the currency of confidence.