The currency of Bulgaria is the lion, which first appeared in circulation in 1881. In accordance with the international standard ISO 4217, the Bulgarian currency is labeled BGN. It consists of one hundred stotinki, which is a bargaining chip.
First lion
Since its inception about 135 years ago, the lion is the currency of Bulgaria. At first, it was equated to the French franc. It should be noted that until 1916, Bulgarian currency coins made of gold and silver were produced using the same specifications as the Latin monetary union banknotes.
Until 1928, all paper bills were backed by gold and silver. In the same year, a new standard was introduced, according to which the cost of one lev was equal in price to 10.86956 mg of gold. During the Second World War, namely in 1940, the lion was tied to the Reichsmark in the ratio of 32.75 to 1. After the liberation of the territory of Bulgaria from German troops in September 1944, the Bulgarian currency was tied to the ruble of the USSR in the ratio of 15 to 1.
At the same time, the rate has regularly changed relative to the US dollar. So, in October 1945, for 1 US dollar they gave 120 leva, and in December of that same year 286.5 leva. In March 1947, the exchange rate was 143.25 leva for one American dollar. It should be noted that, starting in 1943, the issue of Bulgarian metal money was stopped. Until the monetary reform of 1962, coins were not minted.
Second lion
After the end of World War II, the Bulgarian currency was subjected to significant inflation. In 1952, a new lion was launched. The exchange of monetary units was carried out in a ratio of 1 to 100. At the same time, the currency of Bulgaria began to be denoted by means of the abbreviation BGM. The rate of the Bulgarian lev against the US dollar was 6.8 to 1. Five years later, by 1957, this ratio was already 9.52 to 1.
Third lion
Another round of devaluation of the national currency became the reason for another denomination in Bulgaria. This time, the exchange rate was 10 to 1. The lion received the designation BGL, and in relation to the American dollar it was quoted in the proportion 1.17 to 1. This was 1962. Two years later, the Bulgarian lev against the US dollar was 2 to 1 and after that it remained stable for almost thirty years. It should be noted that the Bulgarian currency, like the currencies of other Warsaw Pact countries, was not freely convertible. Therefore, the real lev exchange rate against the US dollar exceeded the official one several times.
Exit from the socialist camp
After the end of the existence of the Eastern Bloc, Bulgaria headed for integration into the European economy and reform. However, in the early 90s, the Bulgarian lion suffered deep inflation and devaluation. In 1997, the country's leadership decided to tie the national currency of Bulgaria to the German mark in the ratio of 1000 leva per 1 mark. Two years later, Bulgarian money was denominated at the same rate, which made it possible to equate the lion to the German currency. In addition, he received a new code according to ISO 4217 - BGN.
Peg to euro
After Germany joined the Eurozone and converted to the common European currency, the Bulgarian lev was pegged to the euro at a ratio of 1.95583 to 1. That is, at the rate at which the German mark was exchanged for the euro. It should be noted that since 1997, the Bulgarian currency has been reliably backed by gold and foreign exchange reserves, which has made it possible to achieve the stability of the lev and to avoid further devaluations. Ensuring the stability of the currency is the main financial regulator of the country - the Bulgarian People’s Bank. At present, the exchange rate of the Bulgarian currency to the euro is 1.96 to 1.
In 2007, the state became a member of the European Union. The country's leadership plans to join the Eurozone. The initial deadline was 2012. What is the currency in Bulgaria today? At the moment, the lion continues to be the official monetary unit in the state.
Denominations of Bulgarian money
To date, paper notes in denominations of one, two, five, ten, twenty, fifty and one hundred leva are in circulation. These banknotes were introduced gradually and survived several reprints. For example, one, two, five, ten and twenty leva were released in 1962, and then their design was updated in 1974. In 1990, a bill appeared in fifty leva.
New banknotes saw the light after the exit of Bulgaria from the socialist camp. Then, updated banknotes in denominations of twenty, fifty, one hundred and two hundred leva were issued. The devaluation necessitated the launch of banknotes of even greater value. So, in 1993, five hundred leva appeared, a year later - one and two thousand leva, in 1996 - five and ten thousand leva and at the peak of inflation in 1997 - fifty thousand leva.
At different times, stotinks with a face value of one, two, five, ten, twenty and fifty were also in circulation. In addition, coins of one and two levs were also issued. They were supposed to replace paper bills of the same denomination in circulation. However, if a banknote of one lev was withdrawn from circulation on January 1, 2016, then the issue of two leva was discontinued, but they remain legal tender.
Lev design
Before you consider the design of modern banknotes of the currency of Bulgaria, you should focus on the design of banknotes already withdrawn from circulation. For example, one thousand leva. This banknote is noteworthy in that it contains an image of Vasil Levsky - an outstanding revolutionary and national hero of Bulgaria. This historical figure is rightfully considered one of the most charming and whole in the history of the Bulgarian people. The leader of the national liberation movement Vasil Levsky, in addition, was one of its organizers. The text of the charter of the Bulgarian Revolutionary Committee written by him is imprinted on the reverse of the bill.
Modern levs also have an interesting design. By the way, it will be said that the banknotes of the Bulgarian currency are extremely similar to the euro. So, on one left is a portrait of St. John Rylsky, who was the founder of Bulgarian hermitism. Two levs contain the image of the enlightener and hieromonk St. Paisius of Hilendar. Five leva depict the painter Ivan Milev, and ten - the scientist Peter Beron. The twenty lev banknote contains a portrait of the revolutionary and politician Dr. Stefan Stambolov. The fifty lev bill depicts the poet Pencho Slaveykov, while the hundred depicts Bulgarian journalist, public figure and lawyer Aleko Konstantinov.
Bulgarian Lev Exchange
Tourists and guests of Bulgaria should remember that it is not possible to pay with plastic cards everywhere and in many situations cash will be simply necessary. For example, in public transport or in numerous markets. Euro as a payment instrument in trade is also used, but in rare cases. At the same time, tourists from the Russian Federation can exchange rubles for Bulgarian leva in numerous bank branches or exchange offices at airports, shopping centers and other institutions. The exchange rate of the Bulgarian currency to the ruble today is 1 to 38.68.
Most local financial institutions operate in the usual mode for many from 9:00 to 17:00. In addition, some banks also have a lunch break. Saturday and Sunday for many institutions are days off. It will be the way to say that it is often more profitable for tourists to buy currency in Bulgaria at exchange points. Here the rate is better than in bank branches. But at the same time additional commission may be charged. This nuance is best clarified in advance.
It should be noted that the exchange rate of the Bulgarian currency to the ruble in the country itself, in particular, and in Europe as a whole, is more profitable than in Russia. Therefore, despite the fact that it is also possible to purchase a Bulgarian monetary unit in the Russian Federation, it is advisable to do this only if it is a small amount of money. It is also worth emphasizing that for the exchange in Bulgaria itself it is better to use not rubles, but euros. In addition, when using plastic cards, it is recommended to give preference to the MasterCard payment system. The commission for receiving Bulgarian lev from ATMs in Bulgaria in this case will be lower.