Bulgaria accepted into EU Exchange Rate Mechanism

Bulgaria was accepted into the European Union(EU)'s Exchange Rate Mechanism (ERM II), the Bulgarian National Bank said in a statement on Friday evening.

"At the request of the Bulgarian authorities, the finance ministers of the euro area member states of the European Union, the president of the European Central Bank, and the finance ministers and central bank governors of Denmark and Bulgaria have decided, by mutual agreement, to include the Bulgarian lev in the Exchange Rate Mechanism (ERM II)," the statement said.

The central rate of the Bulgarian lev is set at that 1 euro equals 1.95583 leva. The standard fluctuation band of plus or minus 15 percent will be observed around the central rate of the lev, the statement said.

"The agreement on participation of the Bulgarian lev in ERM II is furthermore accompanied by a firm commitment by the Bulgarian authorities to pursue sound economic policies with the aim of preserving economic and financial stability and achieving a high degree of sustainable economic convergence," the statement said.

The Bulgarian authorities have committed to implementing specific policy measures on the non-banking financial sector, state-owned enterprises, the insolvency framework, and the anti-money laundering framework, it said.

"Bulgaria will also continue implementing the extensive reforms carried out in the judiciary and in the fight against corruption and organized crime in Bulgaria, in light of their importance for the stability and the integrity of the financial system," the statement said.

The authorities, together with the responsible EU bodies, will closely monitor macroeconomic policy developments and the implementation of these policy measures, in the appropriate frameworks, it also said.