What is BGN (Bulgarian Lev)’
BGN is the Currency abbreviation or currency symbol Bulgarian Lev. LP consists of 100 stotinki. The Bulgarian name comes from the archaic Bulgarian the word “Lev” which can be translated as “lion”. LP are expected to be replaced by the Euro.
Bulgarian Lev is also sometimes known as the “Bulgarian Lev”.
Penetration of ‘bgn (Bulgarian Lev)’
The Bulgarian Lev was introduced in 1881 with a value equivalent to 1 French franc. Since then, lion has been replaced three times. The first change came shortly after the Second world war had finished, due to the rampant inflation of wartime. In 1952, the second Lev replaced the original in size from 100 to 1. This new Lev was pegged to the US dollar at the rate of 6.8 Leva for 1 US dollar. This fell in 1957 to 9.52 leva. Leo was again replaced in 1962 in the amount of from 10 to 1, thereby setting a new U.S. dollar exchange rate at the level of 1.17 Levs for 1 U.S. dollar. Because the Currency was not freely convertible to currencies of the non-Communist countries, the actual exchange rate (black market) was much higher.
The history of the Bulgarian Lev
After the fall of communism, Lev was pegged to German mark (dem) at the rate of 1,000 Lev to 1 mark in order to stem inflation and currency devaluation. The move worked. The Bulgarian currency Board managed to stop the hyperinflation, which peaked at 242% in February 1997. The third and last denomination occurred in 1999, replacing the current Leo the last at the rate of 1000 to 1, That is equivalent to 1 point. With the replacement of the German mark to the Euro, the lion PEG was successfully installed at 1.95583 BGN = 1 Euro, the German mark at a fixed exchange rate with the Euro.
Keeping the Lev stable has established itself as a great move for Bulgaria. The stability of the currency saw the country through external financial crises such as the Great recession of 2009 and the collapse of the banking corporate commercial Bank in 2014.
Bulgaria has prepared a plan, in the past, the transition from Leo to the introduction of the Euro, but not everyone agrees that getting rid of Leo would be in the best interests of the country. Some financial experts believe that Bulgaria should stay at the lion and help keep its own currency strong and stable.