BGN/EUR rate unfavourable

It’s not the solution, there is plenty of eurozone counties that do not want euro and not adopting it :wink:

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Your countries aside from Denmark and Britain are under a legal obligation to adopt the euro, so it is definitely the solution.

yeah, after 10years…who knows if Revolut or Eurozone will exist anyway :rofl:

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That is a completely unrelated subject however.

Whether any of these seven countries joins the eurozone or not does not affect the way Revolut is supposed to provide exchange rates to the euro (according to their own promise).

Yes, if a country adopts the euro, such issue will obviously disappear (duh!) but that is not part of the discussion.

I wish switching to ‎€ was mandatory for countries joining EU. Seems just right, although I can understand why some prefer to stick to their own money.

It doesn’t - they give the wholesale sell rate provided by their FX provider (the interbank rate) for any currency that they support

If it’s worse than another provider (for example those who offer the mid-market rate) that’s all fine and dandy, you’re still getting the advertised rate.

Technically it is but one of the mechanisms to join the euro, to avoid destabilization of the currency is a mechanism that fixes the exchange rate to a certain point and gives very little movement between this.

We discussed this ad nauseam. Little point in continuing (we already agreed anyhow that Revolut offers crappy rates :wink:). All I will say is that Revolut suggests to provide the the official and favourable rate, like many other services, but then applies a gazillion asterisks and fineprints.

But the point was not to discuss that all over again. The point was the suggestion any of these countries should join the euro to fix this is useless and completely unrelated to the problem at hand, as the intrinsic problem is not that these countries are not part of the eurozone but rather aforementioned fineprint.

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Sweden voted no to EUR

Hungary dont want to give up
former Minister of the National Economy György Matolcsy said they did not want to give up the country’s independence regarding corporate tax matters

Czech Republic
According to a poll conducted in April 2019, 20% of Czechs were in favour of introducing the euro while 75% were opposed and 5% undecided.

I disagree
I want to leave EU

Croatia

A poll in November 2017 by Promocija Plus showed that only 31% support the introduction of euro, while 60% oppose

Yeah because not wanting to pay your taxes gets rid of your legal obligation to pay them :slight_smile:

The answer is that’s not true - all these countries will eventually be on the Euro, because when joining the EU they signed up to adopt it unless they specifically negotiated an opt-out to it.

Can’t ignore the fact that since 25 Oct - the BGN to EUR rate has been stabilized around 0.5107 - 0.5108, which is around the rate of some local banks and better than others.

Not sure why Revolut didn’t announce that, but i hope it stays that way.
Now they have to remove the weekend mark up and EUR will start to be useful currency to exchange by Revolut at any time.

That’s not going to happen.

Indeed, they will not removed the markup, anyway they have to profit somehow on the free plans rather to put a monthly fee, so as there is a famous line in bulgarian - “Сиренето е с пари” :slight_smile:

Knowing that the BGN peg was originally a 1:1 peg to the German Mark (i. e. 1 DEM = 1 BGN), I used to assume that currency exchange between BGN and EUR would work the same as exchange between EUR and DEM, i. e. there would be one single fixed rate (1.95583) to be used for both directions. Growing up in Germany, I memorized that exchange rate 20 years ago, and seeing a Balkan country use that rate today feels a bit … well, oddly familiar.

I found out only recently that most(?) credit institutions do in fact charge their own markup on top of the fixed rate that hasn’t changed since the 1990s.

I think it would be interesting if there was a bank out there which exchanged BGN just at the fixed rate of 1.95583.

Of course, this would open the door for abuse: 20 years ago, there was an article in the newspaper here in Germany about a guy who had two bank accounts (one in DEM, the other in EUR) and made a large number of 1 penny transfers from his DEM to the EUR account. Upon arrival, each transaction needed to be converted into Euros for crediting:
0.01 DEM /(1.95583 DEM/EUR) = 0.0051129188 EUR ≈ 0.01 EUR
So from each transfer, the guy earned almost a half cent from rounding and the bank didn’t charge any fees for those transfers. Of course, once all of his money was in the EUR account, he sent it back and repeated the whole thing over and over again until he was rich. :slight_smile:
When his bank noticed what he was doing, it was too late and the guy had already made a fortune from rounding. They closed the accounts, but the guy could keep the money he earned. I don’t know though how the bank issued the account statement to our guy (back then, online banking was new but it was still the norm to issue bank statements on paper, so usually our guy would have received an account statement of a million pages or so… I doubt that the bank had that much paper).

Some banks later discouraged this abuse by charging a fee of 1 cent per bank transfer starting from the 1001st transaction each month.

(The same goes for BAM which has the same exchange rate. In fact, BGN and BAM could be treated as the same currency as long as exchange rates don’t change.)