The Bulgarian Lev, represented as BGN, is the official currency of Bulgaria. The Bulgarian National Bank (BNB), the country's central bank, manages and issues the BGN.
The Bulgarian Lev was first introduced in 1881. Bulgaria gained independence from the Ottoman Empire shortly after in 1908. The current series, known as the 'third Lev,' was introduced in 1999 when the country was undergoing a period of economic stabilization.
Exchange rate regime:Pegged to EUR
Bulgaria's Monetary Policy
The Bulgarian National Bank's monetary policy is built around a currency board arrangement, which pegs the Lev to the Euro at a fixed exchange rate. This arrangement was put in place to stabilize the economy during a period of hyperinflation in the late 1990s. The BNB's primary role under this system is maintaining currency stability and managing foreign exchange reserves.
Key Features of BGN
The Bulgarian Lev is divided into 100 stotinki. Coins are minted in denominations of 1, 2, 5, 10, 20, 50 stotinki, and 1 and 2 leva. Banknotes are issued in 5, 10, 20, 50, 100 leva denominations.
Each BGN banknote features prominent Bulgarian historical figures on the obverse and significant cultural monuments on the reverse, symbolizing the rich history and cultural heritage of Bulgaria.
The stability of the Bulgarian Lev is maintained by its peg to the Euro, which plays a crucial role in facilitating economic transactions both domestically and within the European Union. However, this also means Bulgaria's economic conditions are closely tied to the economic health of the Eurozone.
Bulgaria's intention to join the Eurozone, which has been approved by the European Central Bank and the European Commission, could have implications for the future of the Lev. The transition to the Euro will further integrate Bulgaria into the European economy, but it also means that the country will lose its ability to set its monetary policy.
The Bulgarian National Bank oversees the regulation and policy of the BGN. It ensures the stability of the currency, sets rules on its issuance and exchange, and implements measures against money laundering and financial terrorism. The BNB also plays a significant role in maintaining the stability of the national financial system.
Key considerations to bear in mind
Payment instructions should contain the beneficiary's IBAN, name, and address.
Payment Processing Time
The time taken for a payment to reach the recipient's bank account can vary. Domestic transfers within Bulgaria are typically processed quickly, while international transfers may take a few business days. Consider the processing time when planning your payment to ensure timely delivery. The iBanFirst Payment Tracker can help you track those payments, and ensure a smooth and efficient payment experience.
Fees and Charges
Banks and financial institutions may apply fees and charges when processing international payments. These fees can vary, so it is advisable to check with your bank to understand the charges associated with your transaction. Check out iBanFirst’s Savings Calculator to estimate how much you could save on your next international payment.
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