Ukraine is considering switching to the euro as part of its EU integration process, but just preparing for it could take up to 15 years.
“I think this is a very, very long way for us. I think 10-15 years is definitely not the period in which we will have time to prepare to meet all the criteria necessary for switching to the euro“, said Serhiy Nikolaychuk, deputy chairman of the National Bank of Ukraine (NBU).
He admitted that in 10-15 years Ukraine will hardly be able to assess how ready it is for such a transition. However, he noted that the commitment is “in the more distant future“. The transition to the euro is linked to Kiev's desire to become a member of the European Union.
In May, the head of the NBU, Andrey Pyshny, admitted that dollar transactions dominate in all segments of the country's foreign exchange market, while the share of transactions denominated in euros is growing in most segments, but moderately. In addition, the dollar is used by the National Bank as a benchmark for measuring foreign exchange interventions and smoothing exchange rate fluctuations. At the same time, according to him, Kiev is considering the possibility of changing the base currency from the dollar to the euro, but this work will require complex preparation. According to local experts, this may not happen for at least three years.