Bulgaria is one of the oldest countries in Europe that has managed to maintain its original name since 681 A.D. Its history is very interesting, but complex. Bulgaria’s road to euro – one of the most important developments in its modern history – started more than 20 years ago, when in 1999 the national currency lev was pegged to the euro.
In the current world ridden with geopolitical and economic risks, Bulgaria’s progress towards closer integration in the economic and political core of Europe is a natural choice. Thus, accessing the euro area will bring not only greater financial stability and better investors’ confidence to Bulgaria, but also will allow it to have a greater say in policy-making in the European Union (EU).
Bulgaria joined the EU in 2007.
After almost two decades in the EU and despite various internal political developments, Bulgaria will become the 21st Member State of the euro area on 1 January 2026. The fixed exchange rate is 1.95583 leva = 1 euro. It should be noted that according to the initial plan, Bulgaria had to introduce the euro already in 2024, but this transition was postponed due to the excessive inflation.
However, like any major change, the introduction of the euro in Bulgaria faces challenges. A half of the Bulgarians are cautious or sceptical, as they fear high inflation and price hikes. These concerns are aggravated by disinformation and the uneasy national political situation. Uncertainty was further increased by pro-Russian and nationalist forces that repeatedly tried to undermine Bulgaria’s accession to the euro area. Experience of other countries, including Latvia, suggests that there are no economic grounds for fearing price increases after accession, while being in the euro area shelters from external shocks.
The national currency lev and the euro will both circulate in parallel for a month, i. e. until the end of January 2026. After this date, payments will be made only in euro. Exchange of the banknotes of the national currency to the euro without any commission will be possible not only at the central bank, but also in commercial banks and postal offices for six months after the euro introduction date. After that, the exchange will be possible at the National Bank of Bulgaria without any time limitations and free of charge.
Like in other euro area countries, Bulgaria has chosen to mint its euro coins with significant national symbols. Bulgarian euro coins will be adorned with a Madara Rider (Мадарски конник), and the saints of the Bulgarian Orthodox Church. This will be the first time, when euro coins will feature orthodox Christian motifs.
After Bulgaria’s accession to the euro area, not only banknotes, but also coins will bear a text in Cyrillic, i. e. the word “евро” on 1 and 2 euro coins. As a result, these coins will stand out among the euro coins of other euro area countries. The edge of coins will be adorned with words in Cyrillic “БОЖЕ ПАЗИ БЪЛГАРИЯ” (God Protect Bulgaria).
Latvijas Banka congratulates Bulgaria on this important step. The introduction of the euro is not only about economic development, but also a brave step towards a better future, a vote of confidence on the European values, and a testament to the resilience and ambition of this country. For Bulgaria, the euro is not only a currency, but also a story of progress, identity, and persistence. Bulgaria’s accession to the euro area demonstrates the resilience and development of the euro area – Bulgaria will become the 21st country with the single European currency. Добре дошли в семейството на страните от еврозоната!
Author: Antra Trenko, Expert of Latvijas Banka
Source: bank.lv
