Course history

The history of the Bulgarian lev is full of changes and reflects the turbulent fate of the Bulgarian economy. The lion, as a currency, first appeared on the market in 1881. The name refers to the historical currency from medieval times, which emphasizes the country's attachment to tradition. Initially, the lion was supposed to be exchangeable for gold, but over the course of the twentieth century it was repeatedly devalued, and the value of the currency was susceptible to political consequences, wars, inflation and political changes.

In 1999, as a result of profound economic reforms, Bulgaria pegged its lev to the German mark, and later, in 2002, to the euro, at an exchange rate of BGN 1.95583 per EUR. Currently, Bulgaria is planning to introduce the euro, but until that happens, the lev remains in use as its national currency, which is attracting the interest of investors, especially those looking for new opportunities in the forex market. Many of them choose to trade the lion using the rankings indicated by Webinar Universe, which is useful when analyzing long-term trends.

Top currency pairs

Although the Bulgarian lev is not as popular as the US dollar or the euro, there are several significant currency pairs that interest traders. The most important are:

• BGN/EUR – the lev has a fixed exchange rate against the euro, so this pair is mainly used by investors who want to hedge against the volatility of other European currencies. In the BGN/EUR pair, volatility is minimal, which makes investors use it mainly as a reference when analyzing other markets;
• BGN/USD – this pair is popular especially among those who trade currencies on forex platforms and are looking for opportunities to profit due to the movements of the US dollar. Given the lev's dependence on the euro exchange rate, investors on this pair focus on the fluctuations of the dollar against the euro;
• BGN/GBP – Although the British pound is not as stable as the euro, traders are still following the pair. Fluctuations in GBP and BGN rates can be interesting for those looking for higher volatility, useful for speculating on the forex market.

Investors who want to trade the Bulgarian lev should be interested in the Webinar Universe, which will allow them to access online training on a wide range of currency pairs and attractive trading conditions.

Course Factors

The value of the Bulgarian lev (BGN) is influenced by many factors, both internal and external, which determine its stability and possible changes in the exchange rate. Although the lion is a currency pegged to the euro and therefore relatively stable, there are many important economic, political and financial considerations that can affect its position in relation to other currencies.

The most important factor affecting the exchange rate of the Bulgarian lev is its rigid peg to the euro. Since 1999, the lev has been pegged to the German mark, and since 2002 to the euro, at an exchange rate of BGN 1.95583 per EUR. This fixed rate means that the lev is in practice an "extension" of the euro, so its value against other currencies is largely dependent on the situation of the euro. Such stability has its advantages: it protects the leva from sharp drops in value and minimizes the risk of inflation. However, in the event of turmoil in the eurozone market, the lev exchange rate may also be indirectly exposed to fluctuations.

Although the lev is pegged to the euro, Bulgaria's economic policy is important for investor confidence and indirectly affects the strength of the currency. The Bulgarian central bank does not have much influence on the lev's exchange rate due to its peggion to the euro, but it pursues monetary and fiscal policies that affect the country's economic stability. The Bulgarian government is focused on a low budget deficit and on maintaining a stable fiscal policy, which strengthens the economy and attracts investors. A high budget deficit or debt could cause concern, especially if Bulgaria is further moving closer to adopting the euro.

Bulgaria's preparations for the introduction of the euro are a key factor that will also affect the future of the lev. Bulgaria has started the process of joining the European Exchange Rate Mechanism (ERM II), which is a condition for joining the eurozone. As the convergence criteria are met, which include price stability, sound public finances and exchange rate stability, Bulgaria is gradually moving closer to the full adoption of the single European currency. This process increases the stability of the lev, but also attracts speculators who may try to profit from short-term changes in the forex market. We discuss this topic on Webinar Universe and the online training courses available there.

The Bulgarian lev's exchange rate is also influenced by geopolitical events and the international situation. Bulgaria is located in a region of strategic importance, bordering Turkey and the Balkans, which sometimes exposes it to changes in relations with neighbouring countries. Financial markets are particularly sensitive to international tensions that can lead to changes in the value of currencies. Examples include migration crises or tensions in the Middle East, which affect the political stability of the region.

Future predictions

Forecasts for the Bulgarian lev exchange rate remain largely linked to Bulgaria's plans to join the euro area and the overall economic situation in Europe. When the euro is adopted, the lev exchange rate against the euro will be frozen and replaced directly by the common European currency. Then people investing in currencies will be forced to change their trading strategy.

Nevertheless, the future of the lev is expected to fluctuate slightly during the transition period, especially with sudden changes in the international market. In addition, traders interested in more aggressive strategies may look for short-term opportunities in pairs such as BGN/USD or BGN/GBP, where price fluctuations allow for higher profits in a shorter period of time. Investors looking for a good place to trade the Bulgarian currency can browse through the Webinar Universe to find the best place to trade BGN at a low cost and with the right analytical support.

The Bulgarian lev exchange rate is an interesting case in the monetary world, due to its rigid peg to the euro and its planned entry into the eurozone. Investors who are interested in trading European currencies may find BGN an interesting alternative to the more popular currency pairs, especially if their strategy involves less risk. The Bulgarian lev, although stable against the euro, provides an opportunity to speculate against the US dollar or the British pound, which is attractive for experienced forex traders. For those planning to trade the Bulgarian currency, it is worth using the recommendations to be able to choose a platform that offers support and flexible conditions. An interesting solution will also be the analysis of the offers offered by brokers, which can help investors achieve their financial goals.