Financial Expert's Projections: If Inflation Continues to Fall Bulgaria Can Adopt the Euro in 2025
Julian Voinov, an economist and financial expert, expressed optimism regarding Bulgaria's potential adoption of the euro in 2025 or early 2026
The euro climbed to a 2-1/2-year high close to $1.20 in thin trade on Monday, extending gains made at the end of last week after the head of the European Central Bank held back from talking down the buoyant currency.
A public holiday in global foreign exchange capital London kept the market subdued, with most currencies trading in narrow ranges.
By 0740 GMT, the euro was up 0.1 percent at $1.1926 EUR=, having touched $1.19665 in Asian trade, its highest since January 2015. It was on track for a sixth straight month of gains against the dollar – its best run in five years.
The common currency surged about 1 percent on Friday after ECB President Mario Draghi made no mention of the euro’s strength at the Jackson Hole conference in Wyoming, focusing instead on subjects such as global trade.
The euro was also boosted by Federal Reserve Chair Janet Yellen’s not mentioning U.S. monetary policy. Markets are currently only pricing in one rate hike by the end of next year, Reichelt said.
“The market’s view was confirmed, which justifies a bit more dollar weakness,” she added.
The euro was broadly expected to remain firm, at least in the short term, with investor focus on the ECB – which meets next week – and whether it announces plans to reduce debt-buying at its September policy meeting.
The dollar index – which tracks the greenback against six major rivals – fell to as low as 92.372 .DXY, its weakest since early May 2016, before recovering a little to trade down 0.3 percent at around 92.489.
Imre Speizer, Westpac markets strategist, said Tropical Storm Harvey, which has caused catastrophic flooding in Texas, was likely to further weigh on the U.S. dollar because it was “a major negative weather event” and “obviously bad for the economy”.
The pound was flat at $1.2895 after briefly touching a 13-day peak of $1.2946 GDP=D3.
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In April, inflation across the European Union remained steady, with both the EU and the Eurozone recording a rate of 2.6% and 2.4%, respectively, according to data from Eurostat, the official statistics agency of the EU
Julian Voinov, an economist and financial expert, expressed optimism regarding Bulgaria's potential adoption of the euro in 2025 or early 2026
This was stated by the Governor of the Bulgarian National Bank at the international conference "Bulgaria in the Eurozone, When?" in Sofia
Former Finance Minister Simeon Dyankov has suggested that Bulgaria's potential entry into the Eurozone may not materialize before 2026
In the initial quarter of 2024, Bulgaria's economy expanded by 0.4%, as per an expedited evaluation by the National Statistical Institute (NSI), a slight deceleration from the 0.5% growth witnessed in the final quarter of the preceding year
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