Bulgaria: Representative Rate for the Euro

This paper discusses Bulgaria’s representative rate for the Euro. On July 8, 2025, the Council of the European Union officially confirmed that Bulgaria fulfilled all necessary criteria to join the Eurozone. Consequently, the euro was adopted as Bulgaria's national currency on January 1, 2026, with a fixed conversion rate of 1.95583 Bulgarian lev per euro. Following this transition, the IMF addressed the technical requirements for determining Bulgaria's representative exchange rate under Rule O-2(b)(i). Aligning with procedures established in 1998 for the original Eurozone members, the IMF proposed that Bulgaria’s representative rate be defined by the euro’s value against the U.S. dollar, as published daily by the European Central Bank ECB. This decision ensures consistency across all member states using the euro as legal tender, maintaining a standardized methodology for exchange arrangements and financial reporting within the Fund's regulatory framework.