Bulgaria Adopts the Euro (1 Jan 2026) and Becomes the 21st Eurozone Member

Bulgaria officially adopted the euro on January 1, 2026, becoming the 21st member of the eurozone. The national currency, the Bulgarian lev, was replaced at a fixed conversion rate of 1.95583 levs per €1. Financial Overview: • Conversion Rate: The irrevocable fixed exchange rate for the changeover was set at 1.95583 Bulgarian levs (BGN) per 1 euro (EUR). • Dual Circulation: Both the lev and the euro can be used for cash payments for a one-month period, until the euro becomes the sole legal tender on February 1, 2026. • Price Display: To ensure consumer protection and prevent unjustified price increases, prices must be displayed in both lev and euro for a period of one year, ending on August 8, 2026. • Lev Exchange: Bulgarian lev banknotes and coins can be exchanged free of charge at commercial banks and certain post offices until June 30, 2026. The Bulgarian National Bank will exchange lev for euro indefinitely and without charge. Key Insights: Bulgaria's accession deepens its integration into the European economy, bringing benefits such as lower transaction costs and increased investor confidence. The country's stock market (SOFIX index) experienced a significant rally following the adoption, with turnover increasing by 184% in the first week of trading. Public opinion on the change remains mixed, largely due to concerns over potential price hikes, a common fear during euro changeovers.