What is the currency in bulgaria?

By HotBotUpdated: September 23, 2024

Answer

Introduction to the Bulgarian Lev

The official currency of Bulgaria is the Bulgarian Lev, abbreviated as BGN. The word "lev" means "lion" in Bulgarian, which is a symbol of strength and courage. The currency code "BGN" is derived from the Bulgarian name for the country, "Bulgaria," and "N" stands for the new lev, distinguishing it from the previous lev, which was replaced.

Historical Background

The Bulgarian Lev has a rich history that dates back to its initial introduction in 1881. Originally pegged to the French franc, the lev has undergone several transformations:

1881-1952: The first lev was introduced, pegged to the gold standard and later to the French franc.
1952-1962: The second lev replaced the first at a rate of 1 new lev = 100 old leva.
1962-1999: The third lev was introduced, pegged to the US dollar initially and later floated freely.
1999-Present: The fourth and current lev was introduced, pegged to the Deutsche Mark initially and now to the Euro.

Currency Denominations

The Bulgarian Lev is subdivided into 100 stotinki. It comes in various denominations:

Start

Coins

1 Stotinka: The smallest denomination, mainly used for small transactions.
2, 5, 10, 20, 50 Stotinki: Larger denominations that are frequently used in everyday transactions.
1 Lev: A higher-value coin, often used alongside banknotes.
2 Lev: The highest coin denomination, introduced to reduce the circulation of lower-denomination banknotes.

Banknotes

The Bulgarian Lev banknotes come in several denominations, each featuring prominent Bulgarian historical figures and landmarks:

5 Leva: Portrait of Ivan Milev, a famous Bulgarian painter.
10 Leva: Portrait of Petar Beron, a noted scientist and educator.
20 Leva: Portrait of Stefan Stambolov, a significant political figure.
50 Leva: Portrait of Pencho Slaveykov, a renowned poet.
100 Leva: Portrait of Aleko Konstantinov, a celebrated writer.

Security Features

The Bulgarian Lev incorporates several advanced security features to prevent counterfeiting. These include watermarks, security threads, microprinting, and holographic elements. Each banknote has a unique serial number and various tactile features to assist visually impaired individuals.

Exchange Rates and Pegging

The Bulgarian Lev is currently pegged to the Euro at a fixed rate of 1 EUR = 1.95583 BGN. This pegging has helped stabilize the currency and control inflation. The Bulgarian National Bank (BNB) maintains this fixed exchange rate through a rigorous currency board arrangement.

Use in Daily Life

In Bulgaria, cash transactions are still prevalent, although electronic payments are increasingly common. Both coins and banknotes are widely accepted in retail, dining, and other everyday activities. ATMs and currency exchange offices are readily available, especially in urban areas and tourist destinations.

Future Prospects: Euro Adoption

Bulgaria has expressed interest in adopting the Euro. The country is currently in the Exchange Rate Mechanism (ERM II), which is a prerequisite for Euro adoption. The transition to the Euro would involve several economic and regulatory changes, and the timeline for this transition is still uncertain.

Collectible and Commemorative Coins

The Bulgarian National Bank occasionally issues commemorative coins to celebrate significant events, historical milestones, and cultural heritage. These coins are often made of precious metals like gold and silver and are highly sought after by collectors. Examples include coins commemorating Bulgaria's EU accession and historical anniversaries.

Rarely Known Facts

Historical Pegs: The Bulgarian Lev was once pegged to the Soviet ruble during the communist era, reflecting the country's geopolitical alignment at the time.
Hyperinflation: During the 1990s, Bulgaria experienced severe hyperinflation, which led to the revaluation of the lev in 1999.
Design Evolution: The design of Bulgarian banknotes has evolved significantly, incorporating modern security features and artistic elements unique to Bulgarian culture.

Travel Tips

For travelers to Bulgaria, it's essential to be aware of the local currency practices. Here are some tips:

Currency Exchange: Always use authorized exchange offices or banks to avoid unfavorable rates and potential scams.
ATMs: Widely available in cities and towns, but be cautious of withdrawal fees.
Credit Cards: Accepted in most hotels, restaurants, and shops, but having some cash is advisable for smaller establishments and rural areas.

The Bulgarian Lev is a fascinating currency with a complex history and a significant role in the nation's economy. Whether you're a traveler, a history enthusiast, or simply curious, understanding the intricacies of the Bulgarian Lev offers a unique glimpse into Bulgaria's rich cultural and economic tapestry.