Investor Presentaiton
Exchange Rate Mechanism ("ERM II")
Agreement to include Bulgarian lev in the ERM II reached in July 2020
Maastricht criteria
On 29 June 2018, the Bulgarian authorities officially
expressed their intentions to apply to ERM II and to
participate in the Single Supervisory Mechanism
simultaneously.
On 10 July 2020, the ERM II parties decided to include
the Bulgarian lev in ERM II.
The Bulgarian lev was included in ERM II at a central rate
of 1.95583 levs per euro with a standard fluctuation band
of ±15%.
Bulgaria joined the exchange rate mechanism with its
existing currency board in place as a unilateral
commitment.
The agreement on participation in ERM II was based on a
number of policy commitments by the Bulgarian
authorities, some of which had already been met when the
lev was included in ERM II, with the aim of achieving a
high degree of sustainable economic convergence by the
time of the adoption of the euro.
The new government, which was formed in June 2023,
has announced accession to the euro area on 1 January
2025 as one of the five major priorities in its operational
programme.
2023
2022
2021
HICP Inflation
(% change)
2.8
Reference value
10.8
13.0
6.1
Long-term interest
rate, (average
annual,%
3.2
1.5
5.1
0.2
Gross debt
(% of GDP)
Budget balance
(% of GDP)
Exchange rate
stability
-3.0
-2.9
-4.0
22.9
22.6
60.0
23.9
-3.0
The Bulgarian lev was included in ERM II at a central rate of 1.95583 levs per
euro within the framework of the existing currency board.
Note: HICP and long-term interest rate data for 2023 as well as the respective reference values
are as of September 2023 (on a 12-month average basis). General government gross debt and
budget balance data for 2023 are based on the latest Ministry of Finance forecast.
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