BNB: The benefits of introducing the euro in Bulgaria will be long-lasting

The benefits of joining the eurozone are significant and long-term, said Bulgarian National Bank (BNB) Governor Dimitar Radev, quoted by his institution.

According to him, the benefits include the elimination of currency risk, better financing conditions, and greater predictability for businesses and households.

Investor confidence is also expected to strengthen, which would support growth and stability”, Radev said.

We would like to remind you that an analysis by the Fiscal Council of the experience of other eurozone member states showed that their credit ratings were upgraded shortly after receiving the “green light” from Brussels. This has led many economists and financiers to believe that next month, when the final decision on Bulgaria's accession to the eurozone is announced, our country's credit rating will be upgraded. This will lead to cheaper lending and increased investor confidence.

At the same time, the top banker warns that there are some risks.

The risks are mostly short-term and mainly related to inflation expectations, the business environment adapting, and the technical readiness of the different people involved in the process, Radev said.

According to him, overcoming these risks requires good coordination, consistent action, and active communication both between institutions and with the public.

Dual pricing

Radev explained that the BNB will assist in monitoring dual pricing.

Currently, a number of regulators, including the National Revenue Agency (NRA), the Consumer Protection Commission (CPC) and others, have already started inspections in stores.

The aim is to ensure the correct conversion of prices and to prevent speculative increases and unfair commercial practices,” said the head of the central bank.

He explained that the BNB will assist in the process within the scope of its powers, including with regard to the exchange rate, payment systems, and supervision of the financial sector.

Bulgarian euro banknotes will be available before January 1, 2026

All necessary quantities of banknotes will be provided well in advance of January 1, 2026, so that the transition to the euro is smooth, organized, and without disruption to cash circulation,” Radev assured.

He specified that the production of euro banknotes is centrally coordinated by the European Central Bank, which sets strict standards for quality, security, and technological compatibility. Euro banknotes are produced jointly by the national central banks of the eurozone countries.

Translated with DeepL.