Bulgaria's transition to the euro
As of January 1, 2024, Bulgaria has become the 21st member of the eurozone, transitioning to the euro. This transition means that starting February 1, 2026, payments in the country will only be possible in euros, which has a significant impact on the economy and financial stability of the state.
Economic changes
As part of the transition to the euro, Bulgaria has introduced a dual circulation of the national currency - the lev and the euro, which will last until February 1, 2026. The exchange rate is set at 1.95583 levs per 1 euro. The currency change is accompanied by significant changes in the financial sector:
- Deposits in the non-governmental sector have increased by 13.6%, reaching over 150 billion levs.
- There is an increase in new car sales, which have risen by 27.4%.
The currency change will affect the real estate market, where prices for housing surged on average by 15.4% in 2025, and in large cities - to a record 20%. However, according to the Bulgarian National Bank, at least a third of the 30 billion levs in circulation has dubious origins, raising additional concerns about financial stability.
'This is a historic milestone for the country and an important opportunity for people and businesses throughout the eurozone.'
— Christine Lagarde
This event was characterized by key figures in European politics. Ursula von der Leyen emphasized that this key moment is the result of years of diligent work and dedication. Thus, the transition to the euro opens up new opportunities for Bulgaria, but also presents new challenges in the financial sector.
Bulgaria's transition to the euro is an important step in the country's integration into the European economic system, which can promote investment attraction and improve the business climate. At the same time, the challenges related to financial stability and possible shadow currency circulation require attention from the government and regulatory bodies. The successful implementation of this phase will depend on how the country copes with these challenges in the coming years.