Bulgarias real effective exchange rate (REER) rose by 1.5 points m/m in July 2012 after falling for four straight months, according to data published on the central bank website. The CPI-deflated indicator has been on a stable downward trend since the beginning of 2011 and despite the monthly increase, the latest value shows a 3.5 point drop y/y. The ULC-deflated REER has also dropped over the course of 2011, from 147.5 in December 2010 to 144.5 in Q1 2012. Thus, both indices point to a gain in competitiveness for the country. Weak euro, to which the Bulgarian lev is pegged, can partly explain this process. REER measures a countrys competitiveness compared to its main trading partners. To calculate REER, the exchange rate of the national currency is calculated against a basket of currencies and is deflated by the countrys price levels (given by CPI, GDP deflator or Unit Labour Cost). REER is typically measured as an index with a base of 100 and a rising REER means loss of competitiveness. |
The EC has sent a reasoned opinion to Bulgaria over failure to comply with EU rules on the free movement of capital, the EC said on its website. The privatisation act in Bulgaria introduces ... more
Bulgaria will be seeking an extension of the court procedure filed by the EC against the country over irregularities found in the assignment of digital broadcast spectrum, transport minister ... more
Bulgarian individuals and companies hold EUR 100mn in Cypriot banks according to ECB data, BTA reported quoting Reuters. The largest EU depositors in the crisis-hit country are Greece with EUR ... more