Business | June 5, 2002, Wednesday // 00:00| Views: | Comments: 0

On June 5 five years ago the National Bank of Bulgaria Act was adopted, which introduced the Currency board system in Bulgaria. The currency board arrangement is one of the successful political decisions of the last few years, said Martin Zaimov, Deputy Governor of the National Bank of Bulgaria (BNB) and head of the bank's Issue Department, which performs the currency board's functions. The law pegged the national currency to the German mark at an exchange rate of 1,000:1. The rate was updated to 1:1 after the redenomination of the lev in 1999. Most importantly, the law imposed rigorous restrictions on central bank lending to support the national budget and on refinancing of commercial banks.The currency board arrangement in Bulgaria has refuted its critics, Steve Hanke of John Hopkins University, known as "father" of the arrangement, said at the opening of Investment Forum 2002 in Sofia June 3.
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