In recent weeks, Bulgaria has seen a noticeable uptick in demand for euro banknotes, leading to a short-lived imbalance in currency supply. The disruption is largely attributed to seasonal trends and the market’s ongoing adjustment to rising demand levels.

According to Max Baklayan from Tavex, June typically sees an increase in travel, but this year’s demand is unprecedented - more than 50% higher than the same period last year. The surge is driven by two factors: the upcoming euro adoption and a busy summer travel season, with many Bulgarians heading to Greece and other eurozone destinations.

What’s happening now is part of a transitional period where banks, exchange bureaus, and logistics providers are adjusting to new levels of demand. There is no shortage of euro banknotes in the broader sense - rather, the market is recalibrating. The temporary mismatch between demand and supply is expected to smooth out in the coming weeks, with currency exchange rates likely to settle as well.

Authorities remind the public that when the euro is officially introduced, both the lev and the euro will be accepted for cash transactions during the first month. After that initial period, the euro will become the sole legal tender. However, lev banknotes and coins will still be exchangeable at the Bulgarian National Bank indefinitely and free of charge.

Commercial banks and Bulgarian Posts Ltd. will also offer exchange services under specific conditions:

• In the first six months after euro adoption, exchanges will be mandatory and free of charge.

• Between the sixth and twelfth months, exchanges remain mandatory, though service fees may apply.

• After the first year, institutions may choose whether to continue offering exchanges, and may apply a fee.

In addition, all BGN-denominated bank accounts - current, savings, deposits - will be automatically converted to euros at no cost on the day of the euro’s introduction. From that point forward, all non-cash transactions will be executed exclusively in euro.

“There’s no reason for alarm,” Baklayan emphasizes. “There’s plenty of time for everyone to exchange their levs in an orderly way. It doesn’t have to happen overnight or all at once.”

Source: Tavex press release