site.btaAssociation for Modern Trade Executive Director Valkanov Says Euro Switch Runs Smoothly

Major retail chains were switching to the euro smoothly without serious disruption, Association for Modern Trade Executive Director Nikolay Valkanov said in a television appearance on Saturday.

Valkanov added that chains had stocked enough starter packs of coins and banknotes, with only isolated minor issues, mainly a shortage of euro coins in some smaller shops.

“For the time being, everything is running smoothly. In the first days of the new year, major retail chains planned their operations very well. They ordered sufficient starter packs of both coins and banknotes. So far, we have received no reports of any significant disruptions,” Valkanov said.

Valkanov said that major retail chains were equipped with software solutions that automatically calculated change in both currencies, simplifying the process for customers and staff alike.

Valkanov noted that, for the time being, people were making more purchases in leva because many still held cash in that currency, and he expected that within two to three weeks most of the remaining lev banknotes in circulation would be spent.

On pricing, Valkanov said major retail chains were not engaging in speculative rounding and were recalculating prices using the officially fixed exchange rate. He added that price increases in certain goods were not being driven by the euro, but by external factors, including the end of the zero VAT rate on bread and flour at the start of 2025, weak fruit and vegetable harvests, and other influences. Wage growth in Bulgaria was also naturally putting upward pressure on service prices. Valkanov said he expected prices of some goods, such as dairy products and cereals, could even decline in the coming months if positive trends on international markets continued.