Bulgaria adopts the euro and joins the euro area

The euro banknotes and coins have started circulating in Bulgaria today, making it the 21st member of the euro area. The formal decision was made in July, with an official conversion rate of 1.95583 Bulgarian lev per 1 euro.

European Central Bank President Christine Lagarde welcomed Bulgaria to the euro family and highlighted the significance of the euro as a symbol of European unity and collective strength. The ECB also illuminated its main building in Frankfurt to mark this milestone.

The Bulgarian National Bank (Българска народна банка) has become part of the Eurosystem and a full member of the Single Supervisory Mechanism, with responsibilities including supervising significant institutions, licensing banks, and overseeing qualifying holdings. The bank has paid its remaining contribution to the ECB’s capital and transferred its contribution to the ECB’s foreign reserves.

Bulgarian counterparties can participate in ECB open market operations from 1 January 2026. The ECB will publish lists of credit institutions and branches subject to reserve requirements in Bulgaria and other EU Member States. Transitional provisions for minimum reserve requirements were announced on 13 October 2025, and assets meeting the criteria will be added to the euro area’s eligible collateral list.

Additionally, Bulgaria’s market has joined the Eurosystem’s TARGET services, including T2, T2S, TIPS, and ECMS, ensuring the free flow of cash, securities, and collateral across Europe. Settlement in euro in T2S and TIPS has been operational since 2023 and 2024, respectively, with all services now active.

Today also marks the implementation of a new rotating voting rights system in the ECB’s Governing Council, as per the updated calendar.