BNB Governor: Bulgaria Will Not Lose Its Foreign Exchange Reserves Upon Entering the Eurozone

In an exclusive interview with BNT, the Governor of the Bulgarian National Bank (BNB), Dimitar Radev, stated that Bulgaria will not lose its foreign exchange reserves upon adopting the euro. According to him, there is no reason to expect that joining the monetary union would lead to a rise in consumer prices. He forecast an increase in Bulgarians’ purchasing power, citing the experience of the most recent countries to adopt the European currency.

Radev also stressed that political instability and a string of elections have delayed the process of euro adoption by three years.

BNT: There is once again talk of snap elections and a vote of no confidence in the cabinet. Do you see any risks a month ahead of the final vote on July 8?

Dimitar Radev - Governor of BNB: "A new political crisis at this moment would hinder the smooth transition to the euro and create significant problems for businesses and households. I think one of the lessons since 2020 is that political instability and Euro-political crises are not the answer."

- BNT: Looking at Croatia, what can we say about what lies ahead for Bulgaria?

Dimitar Radev:
"Nothing unexpected happened in Croatia. I don’t believe there will be any surprises or major lessons to draw. In the broader picture, what’s happening is that the eurozone is opening up new opportunities. It’s not a guarantee of anything, but it creates opportunities—for economic growth, and, very importantly, for accelerated real convergence. A key element of real convergence is faster income growth, and that’s exactly what we’re seeing in Croatia."

BNT: How do you respond to the concerns raised in public debates and protests in defence of the lev, claiming that switching to the euro means losing our national identity?

Dimitar Radev:
"In fact, quite the opposite is true. Not only are we not losing our identity, we are actually affirming it. Just think—Bulgarian euro coins and banknotes will feature our alphabet. Some of the greatest Bulgarian national symbols will be depicted on coins that will circulate among 350 million Europeans."