This article provides answers to some of the most frequently asked questions about Bulgaria's transition from Bulgarian lev (BGN) to euro (EUR), and how it will affect Payhawk users.
When will Bulgaria officially adopt the euro?
Bulgaria is scheduled to officially adopt the EUR as its national currency on January 1, 2026, replacing the BGN, in accordance with the Law for the Euro Implementation (LEI).
What will the exchange rate be?
The official exchange rate for Bulgaria’s transition to the euro has been set at 1 EUR = 1.95583 BGN. This fixed rate will be used for converting all balances and transactions from BGN to EUR starting from January 1, 2026. The rate is the same as the current fixed exchange rate under the currency board arrangement and will not change during the transition.
What does dual pricing display mean?
Several months before the official adoption of the euro, banks and fintechs must display prices, fees, and account balances in both BGN and EUR. This mandatory dual display period will continue for 12 months after the euro’s introduction, until December 31, 2026.
During the transition period, banks and fintechs will implement specific practices for displaying balances.
Pre-conversion
Before January 1, 2026, both currencies, BGN and EUR, will be displayed, at the fixed exchange rate of 1 EUR = 1.95583 BGN. For example, a customer with 1,955.83 BGN in their account will see this amount in BGN, along with its equivalent of 1,000 EUR in account statements or banking apps.
Dual circulation period
For one month after the euro is adopted (January 1-31, 2026), both BGN and EUR will be accepted as legal tender for cash payments. However, starting January 1, 2026, all account balances will be officially converted to EUR, and cash withdrawals, whether from ATMs or bank counters, will be available in EUR only.
To ensure transparency, account statements and banking apps will continue to display historical BGN balances alongside their EUR equivalents, particularly for transactions made before the conversion date.
Post-conversion
After the dual circulation period ends (after January 31, 2026), EUR will become the sole legal tender in Bulgaria, and all account balances will be displayed exclusively in EUR. However, to support a smooth transition, the dual display of prices and balances, in both EUR and their BGN equivalents, will continue until December 31, 2026.
For example, a customer’s account balance of 1,000 EUR will be shown as 1,000 EUR, with the equivalent 1,955.83 BGN displayed alongside it until the end of 2026.
Will there be a period during which I can use both BGN and EUR?
Yes. During the dual circulation period - from January 1, 2026 until January 31, 2026, both BGN and EUR can be used.
What will happen to my BGN accounts when EUR is adopted?
All BGN-denominated accounts, such as current, savings, deposit, or budgetary accounts, held with banks or fintechs will be automatically converted to EUR on the official conversion date - January 1, 2026.
The conversion will use the fixed exchange rate of 1 EUR = 1.95583 BGN and will follow official rounding rules to the second decimal place. This is a one-time conversion that will be carried out free of charge, with no fees or commissions applied by banks or fintech providers.
For example, a balance of 1,955.83 BGN will be converted to exactly 1,000 EUR, and a balance is 2,000 BGN will be converted to approximately 1,022.58 EUR.
What will happen to my EUR accounts when EUR is adopted?
When BGN accounts are converted to euros on January 1, 2026, your existing EUR accounts will remain unchanged. The LEI does not require banks or fintech providers to automatically merge converted BGN balances with your existing EUR accounts.
Instead, it allows you as an account holder to transfer your converted EUR balances to another account, for example, an existing EUR account, within the same bank or fintech provider at no charge.
You can choose to:
Keep the converted EUR balance in the same account, now denominated in EUR.
Transfer the converted EUR balance to an existing EUR account within the same provider.
Close the BGN account (now in EUR) for free after transferring the funds.
For example, if you have a BGN account with 1,955.83 BGN (converted to 1,000 EUR) and an existing EUR account with 500 EUR, you can transfer the 1,000 EUR to the existing EUR account, resulting in a single EUR account with 1,500 EUR. Alternatively, you can maintain separate EUR accounts.
What will happen to any deposits and loans I have?
All existing financial products in BGN, such as deposits and loans, will be automatically converted to EUR on January 1, 2026, using the fixed exchange rate of 1 EUR = 1.95583 BGN. Here's how each product will be affected:
Deposits - Your BGN-denominated deposit accounts will be converted to EUR, and your interest rates will remain the same or higher than before the conversion. If you want, you can transfer the converted deposit balance to another account, for example, a current or savings account, within the same bank or fintech provider free of charge.
Loans - If your loan has a fixed interest rate, it will stay the same after the conversion. If your loan has a floating interest rate, the reference benchmark can change, for example, to Euribor or ESTER, but the new rate cannot exceed the rate you were paying before the conversion. Your bank or fintech provider is required to inform you in advance of any changes to the benchmark via their website or at their physical locations.
How can I exchange my BGN cash for euros after the EUR is adopted?
During the dual circulation period (January 1–31, 2026), you will be able to make cash payments in both BGN and EUR, but change and refunds must be given in euros. Exceptions apply if the merchant temporarily lacks euro cash.
After this period, you can exchange your BGN banknotes and coins for euros through the following channels:
The Bulgarian National Bank will exchange BGN to EUR at the official fixed rate (1 EUR = 1.95583 BGN), free of charge and with no time limit.
Commercial banks and Bulgarian Post will also offer free cash exchange services for the first six months after the adoption (until June 30, 2026). After that, they can begin charging fees.
After 12 months (from January 2027 onward), banks and Bulgarian Post can stop offering exchange services altogether.