Several Bulgarian banks have introduced a period during which individuals can deposit cash in leva into their accounts free of charge. The initiative is part of preparations for the country’s adoption of the euro on January 1 next year. According to Tsvetanka Mincheva, Deputy Chair of the Association of Commercial Banks in Bulgaria, leva deposits made now will remain in leva until the end of the year, with no need for conversion in advance. Starting January 1, account balances will automatically appear in euros.

The conversion will be carried out at the official fixed rate, as expected. For six months following the euro's introduction, banks will continue converting leva into euros free of charge and without added fees. After this initial half-year period, the Bulgarian National Bank will remain the place where free currency exchanges can be made.

Mincheva noted that over 30 billion leva are currently in cash circulation across the country. She encouraged citizens to begin depositing their money earlier rather than waiting until the final days of the year, in order to ease the pressure on the banking system.

On the technical side, banks are still finalizing whether ATMs will be able to accept both leva and euros after January 1. While some machines might support dual-currency transactions, this will not be a widespread service and will depend on specific technical upgrades.

To maintain clarity during the transition, dual price displays will continue to be used beyond the start of the year, allowing consumers to compare prices in both currencies.

Mincheva also emphasized that switching to the euro will not lead to increased fees for banking services. Bulgaria’s competitive banking market is expected to keep pricing stable. Legally, existing interest rates on loans must remain unchanged after the currency switch, ensuring borrowers do not face higher payments.

Businesses will also have the chance to collect prepackaged bundles of euro banknotes from their servicing banks. Specially printed euro notes for Bulgaria will be distributed ahead of time, and companies are being advised to estimate their cash needs for the first days of the new year accordingly.

Mailing within the eurozone is also expected to become more cost-effective once Bulgaria joins the monetary union.

Source: BNR interview