On March 2, Ukraine’s National Bank announced a reduction in the official exchange rates for both the dollar and the euro. The euro has once again dropped below the psychological threshold of 51 hryvnias, while the dollar approaches 43 hryvnias.
Key Updates:
- Exchange Rates for March 2: The National Bank has set the official dollar rate at 43.09 hryvnias, a decrease of 11 kopecks. The euro’s official rate is now 50.86 hryvnias, down 16 kopecks.
- Delayed Obligations: Joining the EU does not mean an immediate switch to the euro.
- Criteria for Transition: To adopt the euro, Ukraine must ensure price stability, sound public finances, and stable interest rates and exchange rates.
- Experience of Other Countries: Poland, the Czech Republic, and Hungary still use their own currencies, as the transition to the euro is voluntary.
The National Bank’s official dollar rate for March 2 is set at 43.09 hryvnias, reflecting a decline of 11 kopecks from the previous day.
Meanwhile, the euro has fallen below 51 hryvnias again. The official rate for the euro on March 2 is 50.86 hryvnias, which is 16 kopecks lower than before.
Image: Currency rates for March 2 (infographic by RBC-Ukraine)
In a recent column for RBC-Ukraine, Deputy Head of the National Bank, Volodymyr Lepushynskyi, emphasized that EU membership is a realistic goal for Ukraine.
This has led to increasing public discourse about whether Ukraine should adopt the euro alongside its EU membership and the urgency of such a move.
Lepushynskyi noted that while Ukraine will have obligations to join the eurozone after EU accession, this transition will not happen immediately.
Ukraine will initially receive a derogation status, allowing it to delay the adoption of the euro until it meets specific criteria:
- Price stability;
- Sound public finances (adhering to debt and budget deficit limits);
- Stability of long-term interest rates;
- Stability of the hryvnia’s exchange rate against the euro.
According to Lepushynskyi, among the 11 Central and Eastern European countries that joined the EU after 2004, only seven have adopted the euro. Bulgaria is set to join the eurozone in early 2026.
Notably, major economies in the region, including Poland, the Czech Republic, and Hungary, continue to retain their own currencies. The main reason is tied to the mechanism of joining the eurozone:
- A country must remain in the Exchange Rate Mechanism (ERM II) for at least two years.
- Participation in ERM II is voluntary, allowing countries to choose when to apply, even if they meet other criteria.
Ukraine's National Bank has lowered the official exchange rates for the dollar and euro as the latter dips below 51 hryvnias. Discussions intensify regarding the potential adoption of the euro following Ukraine's anticipated EU membership, with officials noting that this transition will take time and hinge on meeting specific economic criteria.