site.btaSmooth Transition to Euro Builds on Accumulated Resilience - Central Bank Governor

Bulgaria's smooth transition to the euro builds on accumulated resilience, Bulgarian National Bank (BNB) Governor Dimitar Radev wrote in a publication contributed to the February 2026 issue of the Quarterly Bulletin of the Association of Banks in Bulgaria.

On January 1, 2026, Bulgaria acceded to the eurozone as its 21st member state and adopted the euro as its official currency. The BNB became a full member of the Single Supervisory Mechanism and part of the Eurosystem, and its Governor became a full voting member of the European Central Bank Governing Council. As from the same date, the Bulgarian market joined the Eurosystem's TARGET services for settling payments (T2), for settling securities (T2S), for setting instant payments (TIPS), and for collateral management of Eurosystem credit operations (ECMS).

"Today, the clearest indicator of the transition's success is its very normality," the central bank head points out in his publication. "Payment infrastructure is operating without disruption, liquidity conditions are adequate, and the behavior of customers - both households and firms - remains predictable and rational. There are no signs of credit risk shocks or deterioration in banks' portfolio quality attributable to the introduction of the euro. Initial price adjustments are limited and broadly in line with the experience of other countries. This allows the discussion of the euro's effects to rest on data and observation, rather than on expectations or fears," Radev writes.

"The euro does not eliminate risks - it changes how they are managed. The external environment remains complex. Geopolitical tensions, volatility in international markets, and global economic cycles do not disappear with a change of currency. What changes is the framework within which these risks are addressed. Today, such risks are managed within a common European monetary and supervisory architecture. The Bulgarian National Bank and commercial banks now participate fully in the euro area’s shared supervisory cycle - from risk assessment to follow-up actions. This entails higher requirements, but also stronger coordination, greater comparability, and clearer predictability," the BNB Governor notes.

"The euro itself is not a guarantee of stability. It is a framework that makes both strengths and weaknesses more visible. The first months show that Bulgaria's banking sector has entered this framework well prepared. From here on, stability will depend on daily effort - on the quality of management, effective supervision, and the professional responsibility of all participants," the publication reads.