Bulgaria will officially join the euro currency union on New Year’s Day, marking a significant milestone in the country’s ties with Western Europe. The changeover is met with skepticism from the public despite government efforts.

The switch to the euro involves a fixed rate conversion from the lev, with price tags and bank accounts displaying both currencies. Old notes and coins will be phased out quickly, with a grace period for exchanging old money.

Membership in the eurozone will benefit Bulgaria by promoting smoother foreign trade, travel, and investment. The single currency allows for easier comparison of prices, eliminates currency exchange costs for businesses, and grants Bulgaria a seat on the ECB’s governing council.

Joining the euro means Bulgaria must adhere to EU rules on inflation, debt, and deficits. Skepticism about the changeover stems from fears of inflation and loss of national identity. Disinformation campaigns on social media have also influenced public opinion.

Despite initial concerns, experience shows that inflation bumps after joining the euro are temporary. ECB President Christine Lagarde reassures that confidence in the new currency grows over time, leading to public support for the euro. Price hikes during the transition period may not reflect real increases.

Read more at Yahoo Finance: Bulgaria is joining the euro. Here’s what it means for consumers and businesses