Euro adoption raised inflation by 0.3–0.4%, says BNB governor

 

The process of adopting the euro in Bulgaria is proceeding without deviation from the initial expectations, Bulgarian National Bank Governor Dimitar Radev said at an economic forum in Sofia organized by The Economist magazine.

According to Dimitar Radev, 85% of lev banknotes and coins have already been withdrawn from circulation and replaced with over 7 billion euros.

• The euro is only currency, prices displayed in euro and leva until August

• Since the Euro was introduced, Bulgarians are more cautious about spending

He cited preliminary estimates by the National Statistical Institute and Eurostat, stating that annual inflation in Bulgaria in January stood at about 2.3%, which ''generally corresponds to price trends in the euro area.'' ''Transition to the euro was associated with a limited and temporary price effect of around 0.3-0.4 percentage points in monthly inflation in January'', said Dimitar Radev.

''The euro is not an end goal. It is a framework in which the quality of institutions and the sustainability of policies become even more visible”, the governor of the Bulgarian National Bank added.

 Edited by Ivo Ivanov

Translated by Kostadin Atanasov