BNB Governor: The currency board instilled discipline that helped us adopt the euro

The euro does not create trust – it reinforces it. The Governor of the Bulgarian National Bank (BNB) Dimitar Radev stated this during a high-level event organized by the Atlantic Council as part of the spring meetings of the International Monetary Fund (IMF) and the World Bank in Washington. The main theme of the event was the prospects for expanding and deepening the eurozone.

The main lesson from our experience is this: you do not adopt the euro to gain trust; you adopt it when you already have trust. Put another way, the euro does not create trust – it reinforces it,” Radev said, as quoted by BTA.

He also highlighted the benefits of the Currency Board, which has been in place in Bulgaria for nearly 30 years. According to Radev it has contributed to the establishment of discipline not only regarding monetary policy but also regarding fiscal policy, which is reflected in one of the lowest public debt-to-GDP ratios in Europe.

According to the governor the time spent in the Exchange Rate Mechanism (ERM II) and the EU Banking Union also contributed significantly to Bulgaria’s preparation for joining the monetary union.

This helped us align policies, build capacity and strengthen confidence. “And when the time came for the transition, the process worked,” he noted.

Regarding public engagement and the political debate, Dimitar Radev highlighted another key aspect of Bulgaria’s experience – close collaboration with business associations, universities and non-governmental organizations.

This helped explain the processes and reach many people through the platforms of these organizations,” the Bulgarian central banker emphasized.

Translated with DeepL.