Bulgaria Currency Board Turns 20

Bulgaria Currency Board Turns 20

Today marks the 20th anniversary since the introduction of the currency board arrangement in Bulgaria was put into place by the caretaker administration of Stefan Sofiyansku amid a grave economic and financial crisis. Back in 1997 the law fixed the following exchange rate which has not changed ever since: 1.9558 leva for 1 euro.
On the eve of the currency board introduction, President Petar Stoyanov made a nationwide address which the BNR Golden Archives still keep.
Prof. Steve Hanke, often dubbed the father of the currency board, has repeatedly stated that Bulgaria should no way abandon the currency board for the sake of the Eurozone. He fears that joining the Eurozone Bulgaria might turn into a second Greece lacking any financial discipline.
Twenty years after the currency board introduction leading economists and financiers admit that it has bought stability to this country but is coupled with few impediments.

BNR

Cookies Preferences
Choose Type of Cookies You Accept Using


These cookies are required for the website to run and cannot be switched off. Such cookie are only set in response to actions made by you such as language, currency, login session, privacy preferences. You can set your browser to block these cookies but our site may not work then.


These cookies allow us to measure visitors traffic and see traffic sources by collecting information in data sets. They also help us understand which products and actions are more popular than others.


These cookies are usually set by our marketing and advertising partners. They may be used by them to build a profile of your interest and later show you relevant ads. If you do not allow these cookies you will not experience targeted ads for your interests.