The amount of euro banknotes that will be needed for monetary circulation in Bulgaria after the country’s entry into the euro zone amounts to 520 toneswhich equals 25 tir.
The quantity euro coins will be 3600 tons or 181 tiras. This was stated by the Chief Treasurer of the Bulgarian National Bank, Stefan Tsvetkov, during the Euro Week initiative and the Tenth Annual Monetary and Economic Scientific Conference.
At the same time, according to BNB calculations, the Bulgarian banknotes that will be withdrawn from circulation at the expense of the new euro banknotes amount to 642 tons or 32 tyres, which, if stacked one behind the other, would reach the length of 5 football fields. To withdraw the Bulgarian coins from Orbaschenie, 378 tyres would be needed, which would form a column with a length of 6.8 kilometers.
“The issuing bank has the obligation to issue banknotes, store them, process them, but also to withdraw them from circulation and destroy them. There is no other institution in the country that has the right to both issue and destroy banknotes,” Tsvetkov said, pointing out the volume of work the BNB faces in the context of joining the Eurozone.
Tsvetkov pointed out that the number of Bulgarian banknotes in circulation amounts to 604 million. with a total value of 29.7 billion leva, and Bulgarian exchange coins reach 3.3 billion. number with a total value of 615 mln. leva.
The Chief Treasurer of the BNB presented the vision of the Bulgarian Eurosystemson whose national side it is depicted The Madar horseman (coins from 1 to 50 euro cents), St. Ivan Rilski (the 1 euro coin) and Paisius of Hilendarski (the €2 coin).
“We used our tradition of levs to depict them on the euro coins,” said Tsvetkov, adding that the coins express our thousand-year history, which has no parallel among other European countries.
According to Tsvetkov, the euro banknotes and coins will be stored in branches in Sofia, Pleven, Varna, Plovdiv and Burgas, BTA reported.
He noted that the BNB will be able to continue issuing commemorative coins, and this will be done through the national side of the euro 2 euro coin. In this way, Bulgarian commemorative coins commemorating key events in Bulgarian history will be issued within the entire Eurozone. The BNB will be able to issue the so-called collectible coins, which, however, unlike commemorative ones, can be used for payment only within Bulgaria.
Tsvetkov recalled that after the adoption of the euro there will be a period within 1 monthin which levs and euros will be used in parallel in our country, after which within 6 months, BGN will be able to be exchanged without fees in banks and Bulgarian post offices.
“Bulgaria has a clear path to joining,” Tsvetkov said, noting that he believes Bulgaria should join the eurozone as the advantages far outweigh the downsides.
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Hello and welcome to our website world-today-news.com. Today, we have the pleasure of interviewing two guests to discuss the upcoming adoption of the euro in Bulgaria and its impact on the Bulgarian economy. Our first guest is Mr. Stefan Tsvetkov, the Chief Treasurer of the Bulgarian National Bank, and our second guest is Ms. Maria Ivanova, an economics professor at Sofia University.
Mr. Tsvetkov, you have mentioned that the Bulgarian National Bank will have to oversee the issuance and destruction of 520 tons of euro banknotes and 3600 tons of euro coins after Bulgaria joins the eurozone. Can you elaborate on this process and the challenges it might bring? Additionally, how are you preparing for the withdrawal of Bulgarian banknotes and coins from circulation, and what methods will be used for their destruction?
Mr. Tsvetkov: We have over 600 million levs worth of Bulgarian banknotes in circulation and around 3 billion levs worth of Bulgarian coins. To issue the new euro banknotes and coins, we’ll have to remove these from circulation and destroy them. The process is quite complex, as we’ll need to ensure the security and accuracy of destroying these notes and coins. The destroyed notes and coins will be shredded and recycled. We’re working closely with the European Central Bank to ensure a smooth process and have invested in specialized equipment to handle this task.
Ms. Ivanova, do you think Bulgaria is ready to join the eurozone? What are the potential advantages and disadvantages of this move for the Bulgarian economy?
Ms. Ivanova: Joining the eurozone will undoubtedly bring many benefits to Bulgaria, such as increased economic stability, improved credibility, and easier international trade. However, there are also some potential drawbacks, such as losing control over monetary policy and potentially facing higher borrowing costs. I believe the decision to join must be carefully considered and taken only when the economy is strong enough to withstand the challenges that come with it.
We’ve heard about the Bulgarian coins and banknotes that will be depicted on the euro currency. Can you tell us more about these designs and what they represent?
Mr.
