Euro opinions split down the middle

Published on August 30, 2011 by Ray Hughes · No Comments

Bulgaria and Lithuania have mixed views on Euro adoption

The confused fortunes of the Euro zone have been perfectly illustrated by the different views of two countries that, despite being in Europe, do not currently use the Euro as their chief currency.

Bulgaria and Lithuania stand out as contrasting nations in the ever fluctuating European market where, according to the latest reports, nobody can be sure of anything when it comes to projections for the future.

Bulgaria has signalled their intention to tread carefully regarding their plans to adopt the Euro following the recent crisis within the Euro zone.

As the threat of a Greek default and worries over the future of countries already under the Euro umbrella refuse to go away, the Bulgarian Finance Minister Simeon Djankov played his cards very close to his chest when pressed on their Euro adoption plans.

We want to wait and see how the remaining questions for the euro zone itself are resolved,” said Djankov when questioned. “We want to see how this develops before we decide when to go (under the Euro currency). It’s not a hot topic right now.”

Lithuania, in contrast, seem intent on ploughing ahead with their plans to join the currency as soon as they can. This is despite the obvious challenges that inflation poses to the country.

Lithuanian Prime Minister, Andrius Kubilius, is particularly enthusiastic: “The Government is aware of the inflation challenge, but is going to stick to its plan to meet the Euro adoption criteria by the end of 2012, including budget deficit,” said Kubilius.

Both of these examples illustrate the uncertain future which lies ahead for countries who do not currently use the currency, as well as those who currently do.

Transferring money to Bulgaria

If you are looking to invest in Bulgaria, it would be wise to think carefully about how you will be transferring money to Bulgaria. Foreign currency exchange rates quoted by banks are usually worse than the exchange rates available through specialist currency dealers.

So if you are sending money to Bulgaria – which you will inevitably have to do if you are looking to make a property investment – be sure to compare the market before you buy your overseas currency.