Bulgarian Lev (BGN)
What Is the BGN (Bulgarian Lev)?
BGN is the currency code for the Bulgarian lev, which is the official currency of the country of Bulgaria. The currency code was BGL until 1999. The currency symbol is \u043bв. The BGN is comprised of 100 stotinki. The currency's name comes from the obsolete Bulgarian word "lev," which can be meant mean "lion."
While no timetable exists, the euro is expected to ultimately supplant the BGN as Bulgaria has been a European Union (EU) member starting around 2007.
The BGN is pegged at one euro equals 1.95583 leva.
Figuring out the Bulgarian Lev
Bulgaria has made arrangements in the past to switch over from the Bulgarian lev (BGN) to the euro, yet not every person concurs that disposing of the lev would be in the country's best interest. A few financial specialists accept that Bulgaria ought to hold tight to the lev, keeping it strong and stable. Keeping the lev stable has proven to be a superb move for Bulgaria. The stability of the currency saw the country through outer financial emergencies, for example, the Great Recession of 2009 and the banking collapse of the Corporate Commercial Bank — Bulgaria's fourth-biggest bank — in 2014.
The Bulgarian economy is industrialized, and the country is upper-working class. Beginning around 2009, inflation has been moderately stable, fluctuating below 5%. Primary exports incorporate steel and iron, dress, and machinery.
The plural form of lev is leva.
Four Periods of the Bulgarian Lev
The Bulgarian lev can be separated into four distinct historical periods.
- The primary circulation of Bulgarian currency happened somewhere in the range of 1881 and 1952. The valuation of the currency was equivalent to one French franc at first issue. The currency remained discontinuously on the gold standard somewhere in the range of 1899 and 1912 and banknotes had gold or silver backing until 1928. During World War II, Bulgaria pegged the lev to the German Reichsmark. Afterward, during the Soviet occupation, the currency was pegged to the Soviet ruble.
- The currency saw redenomination and started its second period between 1952-1962. Wartime pressures caused inflation in the country, and at revaluation one old lev exchanged for 100 new leva. The rates offered at certain banks changed greatly. The currency was pegged to the [U.S. dollar](/usd-US dollar) (USD) at a rate of 6.8 leva per USD, however tumbled to a rate of 9.52 in 1957.
- The third period of the Bulgarian lev existed from 1962 to 1999. This period started with one more redenomination at 10 old leva for one new lev. The currency stayed stable for almost 30 years. It had gold backing until 1989 and was not effectively convertible to Western currencies. With the fall of communism, the country experienced inflation and devaluation of the currency. As of now, the currency again moved off the gold standard and was pegged to the Deutsche Mark with 1,000 leva rising to one DM. So far, the currency code for the lev was BGL.
- In 1999, the lev saw redenomination for the third time. 1,000 old leva were worth one new lev, and the new lev rose to one Deutsche Mark. The currency code was switched to BGN. Bulgaria received acceptance into the EU in 2007, and the country plans to change over completely to the euro. Be that as it may, deferment of the conversion go on into the 2020s, and no date is currently set. At the point when the Deutsche Mark was supplanted by the euro, the new pegged exchange rate became 1.95583 leva for one euro, or EUR/BGN = 1.95583.
Instance of Converting Bulgarian Lev to U.S. Dollars
The exchange rate between the euro and lev is fixed at 1.95583 leva per euro.
The lev isn't pegged to different currencies however, and that means the rate will change. For instance, among 2015 and the finish of 2018, the USD/BGN varied somewhere in the range of 1.56 and 1.86. The lower the rate, as 1.56, the stronger the lev as it takes less leva to buy one USD. At the point when the rate is higher, as 1.86, it costs more leva to buy one USD.
- In the event that the USD/BGN rate is 1.72, that means it costs 1.72 BGN to buy one USD.
To go the alternate way, and perceive the amount USD it costs to buy one BGN, partition one by the current exchange rate. Or on the other hand 1/1.72 = 0.5814, in this model. Consequently, if the USD/BGN rate is 1.72, it costs $0.5814 to buy one BGN.
The BGN/USD exchange rate is 0.5814 (notice the codes have flipped sides).
- The Bulgarian lev is the national currency of Bulgaria.
- The currency code for the Bulgarian lev is BGN, and the symbol is \u043bв.
- Bulgaria is an EU member beginning around 2007 and is expected to ultimately take on the euro as its currency, albeit no date is officially set.
- The Bulgarian lev is pegged to the euro at a rate of EUR/BGN 1.95583.