Bulgaria Sticks to Currency Peg until Euro Zone Acceptance

Business » FINANCE | May 16, 2009, Saturday // 12:36
Bulgaria Bulgaria Sticks to Currency Peg until Euro Zone Acceptance: Bulgaria Sticks to Currency Peg until Euro Zone Acceptance "The currency board is here and will be here until we enter the Euro zone," Kostov said. File photo

The Bulgarian currency board linking the BGN to the EUR will remain in place until the country gains accession to the single currency.

That was announced Friday by the the deputy governor of the Bulgarian central bank, Dimitar Kostov, speaking to delegates at the European Bank for Reconstruction and Development's (EBRD) annual meeting in London.

"The currency board is here and will be here until we enter the Euro zone," Kostov said.

Bulgaria has a currency board pegging the BGN to the EUR. As a result, it does not have the ability to set interest rates nor can the BGN slide, as other regional currencies have done to discount credit concerns, the Wall Street Journal commented.

 

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Tags: euro zone, currency peg, BNB

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