What Currency Is Used in Bulgaria? A Detailed Overview of the Bulgarian Lev

Understanding the currency used in Bulgaria is essential for anyone planning to visit or engage in financial transactions within the country. The Bulgarian Lev serves as the official medium of exchange, reflecting both historical significance and modern economic policies.

This overview explores the Bulgarian Lev, including its denominations, relationship with the Euro, and practical considerations for exchanging and using it.

The Official Currency Name

The official currency of Bulgaria is the Bulgarian Lev, denoted by the ISO code BGN. The term “Lev” translates to “lion” in Bulgarian, emphasizing the country’s cultural heritage. Introduced in 1881, the Lev has undergone several transformations, with the current version introduced in 1999. The currency is pegged to the Euro, reflecting Bulgaria’s aspirations for deeper integration with the European Union.

Subdivided into 100 stotinki, the Lev facilitates transactions of varying sizes. This structure supports precise pricing and change-making in everyday commerce. The Bulgarian National Bank manages the Lev’s design and issuance, ensuring its stability and integrity. The bank’s policies align with European Central Bank standards, maintaining a robust monetary framework that supports Bulgaria’s economy.

Banknotes and Coins in Use

The Bulgarian Lev is available in denominations that suit both large-scale transactions and daily purchases. Banknotes in circulation include 5, 10, 20, 50, and 100 Lev notes, each distinguished by vibrant colors and intricate designs featuring prominent Bulgarian historical figures and landmarks. For instance, the 50 Lev note features Pencho Slaveykov, a revered poet, highlighting the country’s literary tradition.

Coins complement the banknotes and are available in denominations of 1, 2, 5, 10, 20, and 50 stotinki, as well as 1 and 2 Lev coins. These coins display symbols emblematic of Bulgaria’s identity, such as the Bulgarian coat of arms on the 1 Lev coin. Coins are indispensable in daily transactions, particularly in markets, shops, and public transportation.

Pegged Relationship With the Euro

The Bulgarian Lev’s fixed exchange rate with the Euro has been a cornerstone of Bulgaria’s monetary policy since 1999, anchoring the Lev to the Euro at a rate of 1.95583 BGN to 1 EUR. This arrangement fosters investor confidence and facilitates trade with Eurozone countries.

To maintain the peg, Bulgaria holds substantial foreign currency reserves, enabling the Bulgarian National Bank to support the fixed exchange rate under various conditions. The reserve strategy includes Euros and other major currencies, allowing the central bank to intervene in the foreign exchange market when necessary. This approach enhances Bulgaria’s financial credibility internationally.

The peg also influences inflation and interest rate policies. By aligning with the European Central Bank’s monetary framework, Bulgaria benefits from the Eurozone’s low inflation environment. However, this alignment limits the central bank’s ability to adjust interest rates independently, requiring careful fiscal management to maintain economic stability.

Exchange and Conversion

Exchanging and converting the Bulgarian Lev can be done through banks and licensed exchange bureaus, which are widely available throughout Bulgaria. These institutions typically offer competitive rates and transparency. Comparing rates and checking for service fees is advisable before completing transactions.

Digital banking and fintech platforms like Revolut and Wise provide additional options for currency conversion, often offering real-time exchange rates without hidden fees. These platforms are particularly useful for frequent travelers or businesses engaged in international trade, offering convenience and cost savings.

Payment Methods

In Bulgaria, both traditional and modern payment systems coexist. Cash is widely accepted, especially in smaller towns, local markets, and family-run establishments. Many Bulgarians prefer cash for everyday transactions, and some smaller businesses operate exclusively on a cash basis. Carrying small denominations of Lev and stotinki is practical, particularly outside major cities.

In urban areas, digital and card-based payments have become increasingly popular. Debit and credit cards from major providers like Visa and Mastercard are widely accepted in hotels, restaurants, and retail stores. Contactless payments and mobile platforms like Apple Pay and Google Pay are gaining traction, especially in cities like Sofia and Plovdiv. However, it is advisable to confirm payment options in advance, as some establishments still favor cash.

ATMs are readily available throughout Bulgaria, providing easy access to Lev. Most ATMs accept foreign cards and offer instructions in multiple languages, though users should be mindful of potential fees from their home banks. Travelers can minimize charges by using cards with no foreign transaction fees or leveraging partnerships that reduce withdrawal costs. This combination of payment methods ensures flexibility for navigating Bulgaria’s financial landscape.