Bulgarian Lev (BGN) Definition

What Is the BGN (Bulgarian Lev)?

BGN is the international cash code for the Bulgarian lev, which is the first rate international cash of the country of Bulgaria. The international cash code was once as soon as BGL until 1999. The international cash symbol is lv. The BGN is made up of 100 stotinki. The international cash’s establish comes from the archaic Bulgarian word “lev,” which can also be translated to indicate “lion.”

While no timeline exists, the euro is expected to in the end exchange the BGN as Bulgaria has been a European Union (EU) member since 2007.

The BGN is pegged at one euro equals 1.95583 leva.

Figuring out the Bulgarian Lev

Bulgaria has made plans prior to now to change over from the Bulgarian lev (BGN) to the euro, alternatively now not everyone sees eye to eye that getting rid of the lev may well be throughout the country’s easiest imaginable passion. Some financial experts consider that Bulgaria should grasp tight to the lev, conserving it powerful and cast. Keeping up the lev cast has showed to be an excellent switch for Bulgaria. The stableness of the international cash spotted the country through external financial crises, such for the reason that Great Recession of 2009 and the banking collapse of the Corporate Commercial Monetary establishment—Bulgaria’s fourth-largest monetary establishment—in 2014.

The Bulgarian monetary machine is industrialized, and the country is upper-middle-class. Since 2009, inflation has been slightly cast, fluctuating below 5%. Primary exports include steel and iron, garments, and gear.

4 Categories of the Bulgarian Lev

The Bulgarian lev can also be separated into 4 distinct historical categories.

1. The principle transfer of Bulgarian international cash took place between 1881 and 1952. The valuation of the international cash was once as soon as an similar to 1 French franc to start with issue. The international cash remained intermittently on the gold usual between 1899 and 1912 and banknotes had gold or silver backing until 1928. In all places International Battle II, Bulgaria pegged the lev to the German Reichsmark. Later, all over the Soviet career, the international cash was once as soon as pegged to the Soviet ruble.
2. The international cash spotted redenomination and began its 2nd period between 1952-1962. Wartime pressures resulted in inflation throughout the country, and at revaluation one earlier lev exchanged for 100 new leva. The costs presented at some banks a lot of an excellent deal. The international cash was once as soon as pegged to the U.S. dollar (USD) at a worth of 6.8 leva in line with USD, alternatively fell to a cost of 9.52 in 1957.
3. The third period of the Bulgarian lev existed from 1962 to 1999. This period began with any other redenomination at 10 earlier leva for one new lev. The international cash remained cast for nearly 30 years. It had gold backing until 1989 and was once as soon as now not merely convertible to Western currencies. With the fall of communism, the country professional inflation and devaluation of the international cash. At this stage, the international cash over again moved off the gold usual and was once as soon as pegged to the Deutsche Mark with 1,000 leva equaling one DM. Up prior to now, the international cash code for the lev was once as soon as BGL.
4. In 1999, the lev spotted redenomination for the third time. 1000 earlier leva have been worth one new lev, and the new lev equaled one Deutsche Mark. The international cash code was once as soon as switched to BGN. Bulgaria received acceptance into the EU in 2007, and the country intends to become to the euro. Then again, postponement of the conversion continues into the 2020s, and no date is at the present time set. When the Deutsche Mark was once as soon as modified by the use of the euro, the new pegged exchange worth become 1.95583 leva for one euro, or EUR/BGN = 1.95583.

Example of Converting Bulgarian Lev to U.S. Bucks

The exchange worth between the euro and lev is fixed at 1.95583 leva in line with euro.

The lev is not pegged to other currencies even though, which means the rate will vary. As an example, between 2015 and the top of 2018, the USD/BGN fluctuated between 1.56 and 1.86. The lower the rate, like 1.56, the stronger the lev as it takes fewer leva to buy one USD. When the rate is higher, like 1.86, it costs additional leva to buy one USD.

• If the USD/BGN worth is 1.72, that implies it costs 1.72 BGN to buy one USD.

To transport the other way, and notice how so much USD it costs to buy one BGN, divide one by the use of the existing exchange worth. Or 1 / 1.72 = 0.5814, in this example. Due to this fact, if the USD/BGN worth is 1.72, it costs $0.5814 to buy one BGN.

The BGN/USD exchange worth is 0.5814 (notice the codes have flipped facets).