Crédito y Caución (Atradius) | Bulgaria’s monetary policy framework is strong, with a solid commitment to its currency board arrangement (the lev has been pegged to the euro since 1997). As a result, the Bulgarian Central Bank usually follows monetary policy decisions made by the European Central Bank. Although Bulgaria entered the Exchange Rate Mechanism II of the EU in June 2020, an adoption of the euro seems rather unlikely in the short run. While the currency peg supports foreign investor confidence, it somehow limits Bulgaria’s ability to combat external imbalances.