What is the currency in Bulgaria, the exchange rate to the ruble

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Bulgaria's currency is the lev, which first appeared in circulation in 1881. In accordance with the international standard ISO 4217, the Bulgarian currency is designated BGN. It consists of one hundred stotinki, which are a bargaining chip.

First Lion

Since its inception some 135 years ago, the lev has been the currency of Bulgaria. At first, it was equated with the French franc. It should be noted that prior to 1916, Bulgarian currency coins made of gold and silver were produced using the same specifications as the banknotes of the Latin Monetary Union.

Up until 1928, all paper notes were backed by gold and silver. In the same year, a new standard was introduced, according to which the value of one leva was equal in price to 10.86956 mg of gold. During the Second World War, namely in 1940, the lev was tied to the Reichsmark at a ratio of 32.75 to 1. After the liberation of the territory of Bulgaria from German troops in September 1944, the Bulgarian currency was pegged to the USSR ruble at a ratio of 15 to 1.

At the same time, the exchange rate changed regularly against the US dollar. Yes, in OctoberIn 1945, 120 leva was given for 1 US dollar, and already in December of the same year, 286.5 leva. In March 1947, the exchange rate was 143.25 leva per US dollar. It should be noted that, starting from 1943, the issue of metallic Bulgarian money was stopped. No coins were minted until the currency reform of 1962.

Second lion

After the end of World War II, the Bulgarian currency underwent significant inflation. In 1952, a new lion was put into circulation. The exchange of monetary units was carried out in the ratio of 1 to 100. At the same time, the currency of Bulgaria began to be designated using the abbreviation BGM. The exchange rate of the Bulgarian lev against the US dollar was 6.8 to 1. Five years later, by 1957, this ratio was already 9.52 to 1.

Third Lion

Another round of devaluation of the national currency has led to another denomination in Bulgaria. This time the exchange rate was 10 to 1. The lev was designated BGL, and was quoted at a ratio of 1.17 to 1 against the US dollar. This was 1962. Two years later, the Bulgarian lev exchange rate against the US dollar was 2 to 1, and after that it remained stable for almost thirty years. It should be noted that the Bulgarian currency, like the currencies of other states of the Warsaw Pact, was not freely convertible. Therefore, the real exchange rate of the lev against the US dollar was several times higher than the official one.

Leaving the socialist camp

After the terminationthe existence of the Eastern Bloc, Bulgaria headed for integration into the European economy and reforms. However, in the early 1990s, the Bulgarian lev was subjected to deep inflation and devaluation. In 1997, the country's leadership decided to tie the national currency of Bulgaria to the German mark at a ratio of 1,000 levs per 1 mark. Two years later, Bulgarian money was denominated at the same rate, which made it possible to equate the lev with the German currency. In addition, he received a new code according to ISO 4217 - BGN.

Euro peg

After Germany joined the Eurozone and its transition to a common European currency, the Bulgarian lev was pegged to the euro at a ratio of 1.95583 to 1. That is, at the rate at which the German mark was exchanged for the euro. It should be noted that since 1997, the Bulgarian currency has been reliably backed by gold and foreign exchange reserves, which made it possible to achieve stability in the exchange rate of the lev and avoid another devaluation. The main financial regulator of the country, the Bulgarian People's Bank, is responsible for ensuring the stability of the monetary unit. Today, the exchange rate of Bulgaria against the euro is 1.96 to 1.

In 2007, the state became a member of the European Union. The country's leadership plans to join the Eurozone. The original deadline was 2012. What is the currency in Bulgaria today? At the moment, the lion continues to be the official currency in the state.

Denominations of Bulgarian money

Today, paper banknotes are in circulation in denominations of one, two,five, ten, twenty, fifty and one hundred leva. These banknotes were introduced gradually and went through several reissues. For example, one, two, five, ten and twenty leva were issued in 1962, and then their design was updated in 1974. In 1990, a banknote of fifty leva appeared.

New banknotes saw the light of day after Bulgaria left the socialist camp. Then updated banknotes were issued in denominations of twenty, fifty, one hundred and two hundred leva. The devaluation necessitated the launch of banknotes of even greater denominations into circulation. So, in 1993, five hundred levs appeared, a year later - one and two thousand levs, in 1996 - five and ten thousand levs, and at the peak of inflation in 1997 - fifty thousand levs.

Stotinki denominations of one, two, five, ten, twenty and fifty were also in circulation at different times. In addition, coins were also issued in denominations of one and two leva. They were supposed to replace paper banknotes of the same denomination in circulation. However, if the one lev banknote is withdrawn from circulation on January 1, 2016, then the issuance of two lev is discontinued, but they remain legal tender.

Lion design

Before considering the design of modern Bulgarian currency banknotes, one should dwell on the design of banknotes already withdrawn from circulation. For example, one thousand leva. This banknote is notable for the fact that it contains the image of Vasil Levski, an outstanding revolutionary and national hero of Bulgaria. This historical figure is rightfully considered one of the most charming and integral inhistory of the Bulgarian people. The leader of the national liberation movement, Vasil Levski, was also one of its organizers. The text of the charter of the Bulgarian Revolutionary Committee written by him is imprinted on the reverse of the bill.

Modern lions also have an interesting design. It would be nice to say that the banknotes of the Bulgarian currency are extremely similar to the euro. So, on one left is a portrait of St. John of Rylsky, who was the founder of the Bulgarian hermitage. Two lions contain the image of the enlightener and hieromonk Saint Paisios of Hilendar. Five levs depict the painter Ivan Milev, and ten lions depict the scientist Peter Beron. The twenty lev banknote contains a portrait of the revolutionary and politician Dr. Stefan Stambolov. The fifty leva banknote depicts the poet Pencho Slaveykov, and the one hundred leva banknote depicts the Bulgarian journalist, public figure and lawyer Aleko Konstantinov.

Bulgarian lev exchange

Tourists and guests of Bulgaria should remember that it is not possible to pay with plastic cards everywhere and in many situations cash will be simply necessary. For example, in public transport or in numerous markets. The euro is also used as a payment instrument in trade, but in rare cases. At the same time, tourists from the Russian Federation can exchange rubles for Bulgarian leva at numerous bank branches or exchange offices at airports, shopping centers and other institutions. The exchange rate of Bulgaria against the ruble for todayis 1 to 38, 68.

Most local financial institutions operate in the usual mode for many from 9:00 to 17:00. In addition, some banks also have a lunch break. Saturday and Sunday are days off for many institutions. It will be by the way to say that it is often more profitable for tourists to buy currency in Bulgaria at exchange offices. Here the course is better than in bank branches. However, additional fees may apply. It is better to clarify this nuance in advance.

It should be noted that the exchange rate of Bulgaria against the ruble in the country itself, in particular, and in Europe, in general, is more profitable than in Russia. Therefore, despite the fact that in the Russian Federation it is also possible to purchase the Bulgarian monetary unit, it is advisable to do this only if it is a small amount of money. It is also worth emphasizing that for the exchange in Bulgaria itself it is better to use not rubles, but euros. In addition, when using plastic cards, it is recommended to give preference to the MasterCard payment system. The commission for receiving Bulgarian leva at ATMs in Bulgaria in this case will be lower.