Nearly 68% of Lev Banknotes Withdrawn from Circulation, Says Finance Ministry

Nearly 68% of all lev banknotes have already been withdrawn from circulation, Deputy Finance Minister, Metodi Metodiev, said on Januiary 27. He recalled that after 1 February the euro will remain the country’s official currency.

“This should not be a cause for concern for either citizens or businesses,” Metodiev stressed, “as throughout January and during the first six months of the year they will be able to exchange any remaining levs free of charge and without commission at commercial banks, at the Bulgarian National Bank, and at post offices in areas where there are no bank branches.”

According to him, the process will run smoothly as planned.

“What lies ahead is for the National Statistical Institute, now as part of a country in the euro area, to be required to prepare so-called flash estimates for inflation. As early as next week we will see what that assessment is, although personally I do not expect any major news in this respect,” Metodiev said.

Forecasts by the Ministry of Finance indicate that inflation will remain within the range set out in the autumn macroeconomic forecast, at around 3.5–3.6%, and is even showing slightly more favourable trends. For next year, inflation measured by the Harmonised Index of Consumer Prices is also expected to record a slight decline.

“Expectations of a sharp inflation spike in the first month have virtually disappeared. We do not anticipate any serious shocks or surprises in this regard.

The deadline for enhanced monitoring and dual price labelling remains 8 August, as stipulated in the Law on the Introduction of the Euro,” he added.

Bulgarian institutions are fully operational, with inspections being carried out on a daily basis. Administrative penalties and sanction notices have already been issued. Metodiev pointed out that, so far, there has not been a single registered complaint against acts of the National Revenue Agency or the Commission for Consumer Protection, which, he said, shows that the institutions are doing their job effectively.