10 Leva – Bulgaria

In 2018, Bulgaria's currency situation was defined by its dual-track pursuit of deeper European integration. The country was operating under a Currency Board Arrangement (CBA), which had been in place since 1997 to tame hyperinflation. This system pegged the Bulgarian lev (BGN) firmly to the euro at a fixed rate of 1.95583 leva per euro, ensuring monetary stability and low inflation. The CBA strictly tied the supply of lev in circulation to the Bulgarian National Bank's foreign exchange reserves, effectively outsourcing monetary policy and providing a crucial anchor of credibility for the economy.

That year marked a significant political milestone on this path. In July 2018, Bulgaria officially applied to join the European Exchange Rate Mechanism II (ERM II), the mandatory "waiting room" for euro adoption. This move was part of a concerted push by the center-right government, which had made joining the eurozone a strategic priority. The application was bundled with a commitment to simultaneously participate in the EU's Banking Union, a step aimed at strengthening financial sector supervision and demonstrating the country's preparedness for deeper integration.

Consequently, the core currency narrative of 2018 was one of preparation and convergence, rather than any market volatility or devaluation pressure. Economic discussions focused on meeting the Maastricht criteria, particularly regarding inflation and legislative alignment, rather than the stability of the peg itself, which was unquestioned. The year ended with the European Commission and the European Central Bank beginning their detailed assessments, setting the stage for the eventual formal entry into ERM II in July 2020. Thus, 2018 was a pivotal year of laying the technical and political groundwork for Bulgaria's intended future transition to the euro.