Bulgaria officially joined the euro area, becoming the 21st EU Member State to use the single European currency. Euro banknotes and coins have begun circulating, with the official conversion rate set at 1.95583 Bulgarian lev per 1 euro.
The Bulgarian National Bank (BNB) now joins the Eurosystem, and its Governor takes a seat on the European Central Bank (ECB) Governing Council. Bulgaria also becomes a full member of the Single Supervisory Mechanism, having participated in the close cooperation framework since October 2020. The ECB now directly supervises four significant banks and oversees 17 less significant institutions in Bulgaria, as well as handling bank licensing and assessments of buyers of qualifying holdings.
The BNB has completed its capital contribution to the ECB and transferred assets to the ECB’s foreign reserves. Bulgarian banks can now participate in ECB open market operations and are integrated into the euro area’s TARGET payment and settlement systems (T2, T2S, TIPS, ECMS), ensuring smooth transactions across Europe.
ECB President Christine Lagarde welcomed Bulgaria to the euro family, highlighting the euro as a symbol of European unity and collective strength. To mark the milestone, the ECB lit up its main building in Frankfurt, celebrating the integration of the 358 million Europeans using the euro.
The ECB’s rotating voting system in the Governing Council is also in effect, reflecting Bulgaria’s full participation in euro area decision-making.