Replying to Avatar ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ

the bulgarian central bank uses a peg, and it was very effective for the last 15 years, the romanian currency, the Leu, i think it was "backed by euros" and it fell by 50% in the same period, 12 years ago the Leu and the Lev were both parity at 50% to the euro

the board that does it in bulgaria basically all they have to do is buy euros to push the price up and sell them to lower it

i think the key difference is that "backed by" means more steps to the same end

when i say "buy and sell" i think that mainly means eurobonds to back their loan issuance, so if it goes up, they close out loans in leva and vice versa
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ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 9mo ago

there may be other factors in the fall of the Leu tho, idk, romania's big exports are cars and oil, where bulgaria sells coal, electricity and cheese

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ᴛʜᴇ ᴅᴇᴀᴛʜ ᴏꜰ ᴍʟᴇᴋᴜ 9mo ago

also it's notable that bulgaria also had one of the lowest rates of vaccination during the scamdemic, possibly their economy is doing better because people are less sick

serbs and bosnians were also quite hostile to the scam as well