Bulgarian Leva (BGN)

The Bulgarian Lev (BGN) serves as the official currency of the Republic of Bulgaria, situated in southeastern Europe. The term “lev” originates from the old Bulgarian word for “lion” (лев). The currency symbol “лв” denotes the Bulgarian Lev, which is subdivided into stotinki, with one Lev equating to 100 stotinki.

The Bulgarian Lev has a historical background that traces back to 1881 when it was first established as the national currency, succeeding the Bulgarian Gold Frank. Since its inception, the Lev has experienced numerous transformations, including inflation, revaluation, and substitution with other currencies.

There have been three significant phases in the evolution of the Bulgarian Lev:

First Lev (1881-1952): This era marked the introduction of the Lev in 1881, initially pegged to the gold standard. Over time, its value fluctuated, and it was linked to various currencies, such as the French franc and the German Reichsmark.

Second Lev (1952-1999): In 1952, the Bulgarian Lev underwent revaluation due to hyperinflation following World War II. The new Lev was pegged to the Soviet ruble at a 1:1 ratio and later to the US dollar. Throughout the 1990s, the Lev continued to experience significant inflation.

Third Lev (1999-Present): In 1999, the Bulgarian Lev was revalued again, with 1,000 old Leva exchanged for 1 new Lev. Initially pegged to the German Deutsche Mark, it later became fixed to the Euro after the Euro's introduction.

The Bulgarian National Bank oversees the issuance and management of the Bulgarian Lev. Coins are available in denominations of 1, 2, 5, 10, 20, and 50 stotinki, as well as 1 and 2 Leva. Banknotes are issued in denominations of 2, 5, 10, 20, 50, and 100 Leva.

The exchange rate between the Bulgarian Lev and the Euro is fixed, meaning it does not fluctuate like other currency exchange rates.

In conclusion, the Bulgarian Lev is Bulgaria's national currency, boasting a rich history that began in 1881. Its value has seen various changes and revaluations over the years, with the Bulgarian National Bank managing the currency, which is currently pegged to the Euro at a fixed exchange rate.