Bulgarian Lev Currency

Overview

Bulgarian Lev is the currency used since 1881 and the small unit is known as the stotinka such that 100 stotinka makes one Lev. The currency name meant Lion and the ISO code for this currency is BGN. Lev was revalued in 1999 as 1000 old Levs for 1 Lev new. The ISO currency code for Old was BGL.

The exchange rate is fixed as 1.95583 BGN to 1 euro. However, all the Bulgarian currency is backed by the reserves of foreign exchange and hence Bulgaria Lev is being thought to be replaced with euro.

The sovereign ratings of credit has a significant role in determining the access to international markets and also in fostering stability, growth and efficiency of domestic and international markets.

Key factors

The government of Bulgaria is a parliamentary democracy with 28 provinces led by the president. Bulgaria had sound agricultural sector as well as great industrial sector concentration on heavy chemicals, steel, armaments, electronics and information technology, prior to the fall of communism.

The post-communism showed unsuited developments for a democratic environment. The 90’s showed slow agricultural reform leading to output decrease. Even the share of the industry has declined to 28.7% from 59.4%.

The recent years showed a healthy influx in tourism and the private sector also shows growth in the last 20 years. However, this is one among the poorest countries in Europe.

Uniqueness

Bulgaria is expected to join the European Union in 2007. Bulgaria already established working relationship in 1988 with the EU. The accession negations started in 2000 and came to an end in 2004 agreeing that Bulgaria would join the EU from 2007 January.

In regard to this agreement, Bulgaria would receive 240 million euro and 2.2 billion euro between the years 2007-2009. In 2005 April, Sofia signed an accession treaty of EU stating that they can postpone the accession to Bulgaria, if they find they are at risk.

This has resulted in lot of controversy as Bulgaria had to shut down in 2006 two soviet nuclear reactor plants that supplies electricity needs to almost half of the countries.