BGN, the currency code for the Bulgarian lev, holds a significant place in Bulgaria’s economic history. Originating from the archaic Bulgarian word “lev,” meaning “lion,” this currency has witnessed multiple transitions. Initially coded as BGL, it underwent redenominations, leading to its current form. The lev is symbolized as лв and comprises 100 stotinki.

Bulgaria’s EU membership since 2007 hints at a future shift to the euro, with the current peg at one euro equaling 1.95583 leva.

The prospect of Bulgaria transitioning from the lev to the euro sparks debates among financial experts. While some advocate for maintaining the lev’s strength and stability, others emphasize the potential benefits of adopting the euro. The lev’s stability played a crucial role in navigating external financial crises, including the Great Recession of 2009 and the 2014 banking collapse of Corporate Commercial Bank, Bulgaria’s fourth-largest bank.

Bulgaria’s industrialized economy, characterized by primary exports such as steel, iron, clothing, and machinery, further supports the lev’s stability. Since 2009, inflation has remained relatively stable, fluctuating below 5%. The country’s upper-middle-class status contributes to its economic robustness.

The Bulgarian lev’s historical journey unfolds in four distinct periods. The first circulation, spanning from 1881 to 1952, saw initial valuation equivalent to one French franc. Periodic adherence to the gold standard, pegging to the German Reichsmark during World War II, and later pegging to the Soviet ruble marked this era.

The second period, from 1952 to 1962, involved redenomination due to wartime inflation. A rate of 6.8 leva per USD pegged the currency to the U.S. dollar, later fluctuating to 9.52 in 1957. The third period, lasting from 1962 to 1999, witnessed another redenomination, stability for nearly 30 years, inflation, and eventual pegging to the Deutsche Mark.

The final redenomination in 1999 introduced the current code, BGN, and pegged the lev to the euro at 1.95583. Despite Bulgaria’s EU acceptance in 2007, the euro conversion remains postponed into the 2020s.

The fixed exchange rate of 1.95583 leva per euro underscores Bulgaria’s commitment to European integration. However, the lev’s flexibility against other currencies, exemplified by the USD/BGN rate fluctuating between 1.56 and 1.86 from 2015 to 2018, highlights the dynamic nature of exchange rates. Understanding this rate provides insights into the lev’s strength and purchasing power.

If the USD/BGN rate is 1.72, it costs 1.72 BGN to buy one USD. The inverse calculation reveals that if the USD/BGN rate is 1.72, it costs $0.5814 to buy one BGN. This dynamic interplay showcases the intricacies of currency exchange and its impact on trade and economic stability.

No, Bulgaria currently uses the Bulgarian lev (BGN) as its official currency. While there are plans to adopt the euro, the conversion has been postponed, and no specific date is set.

The Bulgarian lev’s stability during economic crises can be attributed to prudent financial policies, an industrialized economy, and a strong focus on maintaining economic stability. The lev’s resilience played a crucial role in navigating challenges such as the Great Recession of 2009 and the banking collapse in 2014.

The USD/BGN exchange rate fluctuates based on various factors, including economic indicators, interest rates, geopolitical events, and market sentiment. Understanding these factors is essential for assessing the lev’s strength and its impact on international trade.

Bulgaria became a member of the European Union in 2007. Since then, discussions about adopting the euro have been ongoing, with the most recent statement in May 2022 suggesting a potential adoption in 2024.