Euro Move From Bulgaria and Croatia!

Euro Move From Bulgaria and Croatia!

Bulgaria and Croatia took the first step to switch to the euro currency. Both countries joined the European Exchange Rate Mechanism. The European Central Bank (ECB) Governing Council has announced that the Bulgarian currency leva and the Croatian currency kuna provide the conditions for switching to the euro. Thus, Bulgaria and Croatia joined the European Exchange Rate Mechanism (ERM2), called the "waiting room". In the statement, it was announced that the currencies of the two countries were placed in the exchange rate fluctuation band of 15 percent, 1 euro was determined as 1.95583 Bulgarian leva and 7.53450 kuna. As a result, Bulgaria and Croatia will be entitled to switch to the euro currency in the upcoming period after waiting at least 2 years within the mechanism.

What is the European Exchange Rate Mechanism (ERM2)?

The European Exchange Rate Mechanism (ERM2) provides the necessary framework to ensure the stability of exchange rates between member countries' currencies. In the mechanism, the exchange rate of the EU member country currency, which does not use euros, is fixed against the euro and allowed to fluctuate only within specified limits. While the determined fluctuation rate of the mentioned exchange rate is applied as 15 percent, after the completion of two years in the system, the Euro Area members decide whether or not the country will participate.