The so-called Euro integration now seems to be influencing Ukraine’s choice of the main reserve currency. According to several Ukrainian bankers, the amount of transactions denominated in the common European currency has nearly doubled recently. This means that the Ukrainians are gradually abandoning the U.S. Dollar in favor of the Euro.
According to the official stats, the amount of Euro transactions in Ukraine amounts to 25-30% pf the total amount of currency transactions. Even though the U.S. dollar is still number one, it used to make up for 80% of the transactions, with only 15% for the Euro. This lead us to believe that the situation is changing rapidly as the common currency is gaining more weight in the financial life of Ukraine.
International experts say that the Euro is likely to keep on ousting the U.S. Dollar from Ukraine’s financial life now that Ukraine has made a huge step forward to closer integration into the European environment. The whole point is that it would be irrational to load up on dollars when the EU and the Eurozone are neighbors living next door.
For those of you who don’t know, the European Union has canceled the visa regime with Ukraine, which means that from now on the Ukrainians don’t need visas to travel around the EU. This is one of the key factors why the common European currency has been getting increasingly popular with the Ukrainians over the last few months.
