Bulgaria Adopts Euro as 21st Eurozone Member

Bulgaria officially adopted the euro on January 1, becoming the 21st member of the eurozone and marking the end of the lev as its national currency after nearly 140 years. The Balkan nation of 6.7 million people, the European Union's poorest member when it joined in 2007, dispensed its first euro banknotes from cash machines in the capital, Sofia, as crowds gathered in freezing temperatures to witness the changeover at midnight.

The transition unfolded smoothly in technical terms, with all bank accounts, wages, pensions, and contracts automatically converted at a fixed rate of 1.95583 leva per euro to ensure no loss in value. For the next month, the lev remains legal tender for cash payments, though change is given only in euros. Prices in shops will display both currencies until mid-2026 to aid adjustment and monitor for potential hikes. Bulgaria's central bank, which had pegged the lev to the euro since 1997, now holds a seat on the European Central Bank's Governing Council, giving the country influence over eurozone monetary policy.

This milestone caps nearly two decades of preparation since Bulgaria's EU accession, following the 1989 shift from a Soviet-style economy to...