BGN (Bulgarian Lev)

AAA

DEFINITION of 'BGN (Bulgarian Lev)'

The currency abbreviation or currency symbol for the Bulgarian lev (BGN). The Bulgarian lev is made up of 100 stotinki. The Bulgarian name comes from the archaic Bulgarian word "lev", which can be translated to mean "lion". BGN is expected to be replaced by the euro in 2012.

Also known as the "Bulgarian leva".

INVESTOPEDIA EXPLAINS 'BGN (Bulgarian Lev)'

The Bulgarian lev was first introduced in 1881 with a value equivalent to 1 French franc. Since then, the lev has been replaced three times. The first replacement came shortly after WWII finished, due to rampant wartime inflation. In 1952, the second lev replaced the original at a rate of 100 to 1. This new lev was pegged to the U.S. dollar at a rate of 6.8 lev to 1 U.S. dollar. This fell in 1957 to 9.52 lev. The lev was replaced again in 1962 at a rate of 10 to 1, setting the new U.S. dollar exchange rate at 1.17 lev to 1 U.S. dollar. Because the currency was not freely convertible to non-communist countries' currencies, the actual exchange rate (black market) was much higher.

After the fall of communism, the lev was pegged with the Deutsche mark (DEM) at a rate of 1,000 lev to 1 mark in order to stem inflation and currency devaluation. A third and final redenomination took place in 1999, with the current lev replacing the last at a rate of 1,000 to 1, making it equivalent to 1 mark. With the replacement of the Deutsche mark with the euro, lev's peg has effectively been set at 1.95583 lev = 1 euro, the Deutsche mark's fixed exchange rate with the euro.

RELATED TERMS
  1. Currency

    A generally accepted form of money, including coins and paper ...
  2. Quote Currency

    The second currency quoted in a currency pair in forex. In a ...
  3. Forex - FX

    The market in which currencies are traded. The forex market is ...
  4. Base Currency

    The first currency quoted in a currency pair on forex. It is ...
  5. Forex Futures

    An exchange-traded contract to buy or sell a specified amount ...
  6. Currency Pair

    The quotation and pricing structure of the currencies traded ...
RELATED FAQS
  1. If a country's currency is determined by the strength of its economy, why isn't the ...

    Generally speaking, when Country A's currency is worth more than that of Country B, it does not necessarily mean that Country ... Read Full Answer >>
Related Articles
  1. Forex Education

    Currency Exchange: Floating Rate Vs. Fixed Rate

    Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers.
  2. Forex Education

    Top 7 Questions About Currency Trading Answered

    Whether you're puzzled by pips or curious about carry trades, your queries are answered here.
  3. Forex Education

    8 Basic Forex Market Concepts

    We go over some of the things you need to understand before you can trade currencies.
  4. Forex Education

    Dollarization Explained

    Find out how fledgling economies can find some stability in their currency and attract foreign investment.
  5. Bonds & Fixed Income

    6 Factors That Influence Exchange Rates

    Find out how a currency's relative value reflects a country's economic health and impacts your investment returns.
  6. Personal Finance

    What Are Central Banks?

    They print money, they control inflation, and much, much more. All you need to know about central banks is here.
  7. Investing

    How To Invest Outside Your Comfort Zone?

    Sometimes, when it comes to investing, we have to step outside of our comfort zone and use investment tools to express a market view or specific outcome.
  8. Economics

    Understanding Money Supply

    Money supply – also called money stock -- refers to the total amount of currency and other liquid financial products in an economy at a particular time.
  9. Economics

    What is Fiat Money?

    Fiat money is currency that a government has declared to be legal tender, but is not backed by a physical commodity.
  10. Economics

    What is M1?

    M1 is a measurement of money supply that includes all hard currency, plus demand deposits such as checking accounts.

You May Also Like

Hot Definitions
  1. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  2. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  3. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  4. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  5. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
Trading Center