Bulgaria became part of the European Union in 2007. Joining the banking union and the foreign exchange mechanism ERM II had to become the next stage planned for July of this year.
Due to the difficult situation in the world, the Bulgarian National Bank headed by Dimitar Radev has announced a decision to postpone the procedure for a year, until 2021. The Governor of the BNB noted that such a delay was not significant. Moreover, Radev was optimistic about the condition of the country’s banking sector and said that it was fully prepared for the global economic crisis.
Joining the euro zone takes place through a kind of buffer zone. First of all, the candidate country should join the EU banking union and the European Exchange Rate Mechanism (ERM II). This is the first step towards the introduction of the euro. After a two-year trial period, the country can count on full accession to the eurozone.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group