IMF’s Kristalina Georgieva: Bulgaria’s Euro Zone Destiny

Understanding GBP to BGN

As of September 27th, 2021, 1 British pound (GBP) is equivalent to 2.44 Bulgarian lev (BGN). This means that if you want to convert British pounds to Bulgarian lev, you can multiply the number of pounds by 2.44 to get the equivalent amount in lev. For example, if you have 100 GBP, you will multiply it by 2.44 to get 244 BGN. Similarly, if you want to convert Bulgarian lev to British pounds, you can divide the amount of lev by 2.44 to get the equivalent amount in pounds. Bulgaria is destined to join the eurozone, according to International Monetary Fund (IMF) Managing Director, Kristalina Georgieva. Despite facing political instability in recent years, Bulgaria’s status as an EU member nation makes it inevitable that the country will eventually join the euro area. 

Bulgaria’s Hurdles and Croatia’s Triumph

In 2020, Bulgaria and Croatia joined ERM-2, the waiting room for the euro area. While Croatia has already adopted the euro, Bulgaria’s political deadlock has delayed its integration. However, Georgieva emphasized that political stability is essential for a successful monetary integration, and pointed to Croatia as an example of how political will and societal unity can lead to positive outcomes.

Bulgaria’s Currency Board

Georgieva also highlighted the importance of Bulgaria’s currency board, which has helped stabilize the country’s economy since 1997. Bulgaria’s currency is already pegged to the euro, making it closely integrated into the euro area. Despite the economic shock caused by the coronavirus pandemic, Georgieva noted that the central and southeast European region has shown a strong recovery from the losses sustained during the pandemic. 

Debt-Free Transition to the Eurozone

The news of Bulgaria joining the eurozone is significant and could have an impact on investment decisions. Georgieva’s message underscores the significance of political unity and stability in ensuring economic growth and facilitating a smooth transition into the eurozone. This statement could reassure investors that Bulgaria’s transition to the eurozone will be debt-free and that the country is committed to maintaining a stable currency in the intervening period.

 

1 GBP is currently equivalent to 2.44 BGN. To convert GBP to BGN, multiply the number of pounds by 2.44. To convert BGN to GBP, divide the amount of lev by 2.44.