The Bulgarian currency has fallen by around 50% in value in recent weeks, and it looks set to stay that way.
Bulgarian Prime Minister Andrei Milov said that the government is now trying to reduce the currency’s value.
The country has been trying to keep the currency low in order to prevent a contagion of other negative news from spreading, he told journalists on Thursday.
Milov said he expects the currency to lose around 2.8% of its value by the end of the year, and hopes that this will help stabilize the economy and keep inflation down.
The central bank said on Thursday that the country’s central bank will be able to issue the new 1,500 bursa notes in three weeks.
The central bank already has 500 billion to issue 5 billion new notes, Milov’s office said in a statement.
The bursas devaluation is part of a series of measures that the Bulgarian government has taken to contain a series in the last month that has sparked fears of a possible financial collapse.
The government is considering imposing a tax on financial transactions.
On Friday, the country began its own economic easing, with a five-day general sale of its national stock market.
The country’s inflation rate, which stood at around 8% last year, has fallen to around 6%, and a lower than expected economic growth rate of around 2% has helped fuel the devaluation.