The Bulgarian National Bank (BNB) has clarified numerous questions about the adoption of the euro, the conversion of the Bulgarian lev, and its role after the country joins the eurozone. A primary point emphasized by the BNB is that the official exchange rate between the lev and the euro is irrevocably fixed at 1.95583 leva per 1 euro. In the event of Bulgaria’s eventual membership in the eurozone, currency conversion from levs to euros will be conducted by dividing the amount in levs by this fixed exchange rate, with no rounding or truncating applied.

When converting amounts from levs to euros, the BNB outlined the rules for rounding: the exchange rate will not be rounded or truncated, but the resulting amount will be rounded to two decimal places. This rounding will be based on the third decimal place: if the third decimal is less than five, the second decimal remains the same; if it's five or more, the second decimal is increased by one. For example, if a loaf of bread costs 1.70 leva, it will be priced at 0.87 euros once converted.

The BNB also pointed out that any changes in rounding rules would only occur if specified by European Union legislation. Furthermore, from the moment the euro is introduced in Bulgaria, all cash withdrawals from ATMs will be in euros, as only euro banknotes will be distributed.

The central bank also highlighted the economic benefits of the euro for both individuals and businesses. The adoption of the euro will allow for easier price comparisons across the eurozone, fostering competition and benefiting consumers. Additionally, businesses will find it simpler and less expensive to engage in trade with both eurozone countries and other global markets. Other advantages include increased financial stability, greater economic growth, and more integrated financial markets. The use of the euro as a second global reserve currency will also offer Bulgaria increased influence on the world stage, while strengthening European identity.

Contrary to some concerns, the BNB assured that the introduction of the euro would not cause a dramatic rise in prices. The price of goods and services would not double, and there would be no immediate inflationary consequences. It was also clarified that taxes, fees, and payments to the state and municipalities would be made in euros after the euro's introduction. However, during the dual circulation period—the one-month window after the euro's official adoption—payments can still be made in levs alongside euros.

During the dual circulation period, which extends one month after the euro's introduction, the BNB set rules for the display of prices. Goods and services must list prices in both levs and euros in clear, easily legible terms, with the currency type clearly indicated. For any commercial communications, prices in audio or video ads can only be expressed in levs before the euro introduction and only in euros afterward. Additionally, when offering discounts, businesses may list prices in both currencies, but the final price paid by consumers must be displayed in both currencies on receipts. The official exchange rate should also accompany the amounts listed.

In terms of cash transactions, during the dual circulation period, merchants must return the correct balance in euros when payments are made in cash. If the merchant lacks enough euro change, they are required to return the balance in levs instead. Furthermore, the use of more than 50 lev coins in a single transaction is prohibited. When consumers make complaints or request reimbursements, the refunds will be made in euros, though if the merchant lacks sufficient euro coins or notes, they can return the amount in levs.

The BNB also clarified that any future cash transactions with vending machines or self-service systems will be in euros, even if the machine is out of order. The central bank emphasized that prices for goods and services must not increase during the dual circulation period without valid economic justification. The introduction of the euro will also not affect existing legal documents that reference the lev; these references will be treated as euro amounts according to the official exchange rate.

The BNB also explained its role after Bulgaria adopts the euro. As part of the European Central Bank’s (ECB) governing council, the Governor of the Bulgarian National Bank will have voting rights on a rotational basis in shaping the monetary policy of the euro area. The governance of the BNB itself will remain unchanged, with the same leadership structure, including the Governing Council and its three Deputy Governors.

Furthermore, the BNB noted that the real-time gross settlement system (RINGS), which is currently used for lev transactions, will be replaced with the TARGET services platform, facilitating euro transactions. When Bulgaria joins the eurozone, any outstanding domestic government debt will be fully converted to euros, and government securities transactions will be processed using the Eurosystem’s TARGET2-Securities platform.

In terms of currency exchange, the BNB will offer unlimited, free exchange of levs for euros at the official rate of 1.95583 levs for one euro. This service will be available for an unlimited time and in unlimited quantities at the central bank, starting from the moment the euro is introduced. For the first six months, banks and the Bulgarian Posts EAD will also exchange levs for euros free of charge. Afterward, banks may charge a fee for this service, but it will still be available for up to a year. After the first year, this service will be discontinued.

In conclusion, the BNB has provided comprehensive guidelines on the rules and procedures surrounding the introduction of the euro in Bulgaria, from exchange rates to cash transactions. These steps are designed to ensure a smooth transition for the public, businesses, and government as Bulgaria integrates into the broader eurozone economic framework.