site.btaCentral Bank Governor Radev: Euro's Role in Today's Global Environment Should, Will Grow

In an interview with Bloomberg published on Saturday, Bulgarian National Bank (BNB) Governor Dimitar Radev said that the role of the euro in today’s global environment shuold and will grow against the backdrop of developments surrounding the US dollar, which are altering the international monetary landscape. In his words, the more pertinent question is whether the necessary conditions - both institutional and political - will be established to support this evolution within the broader framework of euro area policy.

According to Radev, who will join the Governing Council of the European Central Bank (ECB) as of January 1, 2026, the ECB must monitor political developments more closely than in the past, as politics is increasingly becoming a source of uncertainty, instability, and systemic risk. This is something that central banks must take into account in their assessments. Political developments - both domestic and global - are now part of the risk environment in which banks operate, Radev commented.

With regard to the ECB's monetary policy decisions, Radev said that he does not expect abrupt changes, adding that future adjustments to interest rates must take into consideration both the global context and the balance of risks, including those related to trade and geopolitical developments.

Asked whether he feels closer to the ECB Governing Council's hawkish or dovish camp, Rade, who will attend meetings as an observer as of September, replied that he has never answered that question directly and will not do so now. The BNB Governor underscored that his position, shaped by years of experience in monetary and fiscal policy, is consistent. This perspective inevitably leads to a conservative stance, firmly grounded in a strict interpretation of the central bank’s mandate, he added.

Radev further commented that his experience with the planned economy practiced in Bulgaria prior to 1989 has shown him how fiscal and monetary policy should not be conducted. In his  words, this experience has enduring value, primarily as a reference point for what to avoid, Radev told Bloomberg.