Expert: Panic Currency Swaps Show Bulgarians’ Distrust, but the Euro Will Come at the Official Rate

A growing number of Bulgarians have been rushing to exchange their leva for euros at exchange offices, despite the unfavorable conditions. At some of the busiest bureaus, the rate has reached 1.972 leva per euro, which means that anyone converting 1,000 leva today loses about 8 leva compared to the official fixed rate. Financial expert Deyan Vassilev, founder and CEO of the financial portal "MoitePari.bg," explained to the Bulgarian National Radio that this anxiety-driven behavior is unnecessary, since from January 1, 2026, citizens will be able to exchange leva for euros at the official rate of 1.95583 free of charge in all banks and post offices. He reminded that after the start of 2026, bank account balances will be converted automatically, without people needing to take any action.

According to Vassilev, this rush reflects uncertainty and a lack of trust in the official assurances. "People fear that their leva will lose value, and I interpret this panic conversion as a kind of vote for the euro," he commented. He underlined that the exchange will be free and guaranteed after the official date, unlike the current losses incurred in private exchange offices.

When it comes to exchanging large sums in banks, Vassilev clarified that up to 30,000 leva can be converted into euros without prior notice and at no cost. For those holding larger amounts in cash, for example, 100,000 leva, he explained that they could avoid attention by splitting the exchange into smaller amounts, such as ten installments of 10,000 leva.

The expert also spoke about how the eurozone entry influences the property market. According to him, the expectation of rising prices has become a self-fulfilling prophecy: people assume property values will increase, and many owners are reluctant to sell, which keeps supply low. “Apartments remain as bricks and mortar, but their perceived worth is inflated because of this belief,” Vassilev said. He expects the pressure to ease in the first half of 2026, with the market stabilizing afterward. Instead of annual increases of 10–15%, he believes growth should return to more moderate levels of 2–3%. He also noted that higher property taxes in other countries contribute to price stability, as owners there are discouraged from treating real estate as savings accounts.

Vassilev pointed out another issue: Bulgarians currently keep around 94 billion leva in banks, generating close to zero returns. In his view, this reflects a tendency to prioritize security over optimizing income, which leads to missed opportunities and low overall financial literacy.

Source: BNR interview