On January 1, 2026, Bulgaria officially became the 21st member of the Eurozone. This moment not only marks a watershed in Bulgaria's economic transformation but also signifies an expansion of the European Central Bank's decision-making body—the new Governing Council seat increases from 26 to 27, and the Governor of Bulgaria's central bank will have full voting rights.

Specifically, the lev's exchange rate with the euro is locked at 1.95583:1. Starting from January 1, the country will enter a dual circulation period, and by February 1, the euro will become the sole legal tender. It sounds like a technical financial move, but the underlying logic is quite interesting—this eliminates all exchange rate risks.

Bulgaria's qualifying data are quite solid: inflation rate at 2.7%, debt-to-GDP ratio only 24.1%, fiscal deficit controlled within 3%, and long-term interest rate at 3.9%, all meeting the Maastricht convergence criteria. The ECB continues its stance of no rate cuts since June 2024, and the market generally expects the interest rate of around 2% to remain stable for the long term.

In terms of actual benefits, Bulgaria will save hundreds of millions of euros annually in transaction costs, its sovereign credit rating will improve, directly lowering financing costs, and it can also release about 15 billion levs in reserves. The tourism industry (accounting for about 8% of GDP) and cross-border transactions of small and medium-sized enterprises will become much smoother, and FDI attractiveness will also increase. A deeper benefit is access to the ECB's liquidity tools and stability mechanisms—when external shocks occur, the country's risk resistance will be significantly enhanced.

From a broader macro perspective, this reflects Europe's ongoing efforts to strengthen internal financial integration amid complex geopolitical situations. For global trading market participants, this means the eurozone's interest rate framework will remain stable, and regional liquidity tools will become more comprehensive.