BGN (Bulgarian Lev)
 |
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 Definitions
Articles Of Interest
-
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. -
Top 7 Questions About Currency Trading Answered
Whether you're puzzled by pips or curious about carry trades, your queries are answered here. -
8 Basic Forex Market Concepts
We go over some of the things you need to understand before you can trade currencies. -
Dollarization Explained
Find out how fledgling economies can find some stability in their currency and attract foreign investment. -
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. -
What Are Central Banks?
They print money, they control inflation, and much, much more. All you need to know about central banks is here. -
If a country's currency is determined by the strength of its economy, why isn't the U.S. dollar worth more than the British pound?
Generally speaking, when Country A's currency is worth more than that of Country B, it does not necessarily mean that Country A's economy is stronger than B's. For example, Japan's economy is ... -
How Bitcoin Works
Bitcoin is a digital currency that exists almost wholly in the virtual realm, unlike physical currencies like dollars and euros. A growing number of proponents support its use as an alternative ... -
How To Survive When Prices Double Every Day And A Half
Hyperinflation can destroy your life savings in a matter of months or less. We’ve seen again and again throughout history…Germany in the 1920s, Hungary in the 1940s, Yugoslavia in the 1990s and ... -
The Yen Is Setting Up To Be An Attractive Long-Term Investment
As Japan embarks on quantitative easing, the yen has come under pressure. Will it continue to be the source of big profits in the latter half of 2013?
Free Annual Reports