PROSPECTS OF CURRENCY REFORM IN BULGARIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R011800030004-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Document Release Date: March 15, 2006
• Sequence Number: 4
• Publication Date: April 30, 1952
• Content Type: REPORT

Approved For ReleascCNgB 8/Mi ECII - RR2 11 801180003000 - F` L- L2-:-
CLASSIFICATION SECRET/CONTROL - U.S. OFFICIALS ONLY 25X1
SECURITY INFOR)IATION
INFORMATION REPORT
COUNTRY Bulgaria
SUBJECT ''ProsPects.of Currency Reform,
in Bulgaria
CD NO.
DATE DISTR. so Aril. 1.
NO. OF PAGES 2 .
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
PROHIBITED BT LAB. THE REPRODUCTION OF THIS FORM IS PROHIBITED.
THIS IS UNEVALUATED INFORMATION
1. By mi ..February - l932, tnfor tion concerning the revaluation of the revs vas
sufficiently known throughout Bulgaria to occasion rumors concerning an im?
pending leva reform. These rumors led to a moderate, but by no means excessive,
demand for non-perishable goods.
2. However, when the Voice of America broadcast. on 17 February 1952 that the lava.
was about to be revalued, the Bulgarians, always prepared to lend. .credence to
.:'estern broadcasts, readily believed the report (especially since the govern
:dent did not contradict the rumors), and the week of 18-23 February 1952 saw eF
r
ve
y considerable run on the shops, especially for textiles'anid partic~ ],y
by the peasants who traditionally have large reserves of liquid funds.l Since
no announcement of revaluation had been made by 23 February 1952, the week be
ginning 24 February 1952 saw an appreciable 'dim'inution of the buying spree..
For the Bulgarian J(bvernment, the rumoro.`of reform and the Voice of Aperica
broadcast ?-as..-m "blessing. in disguise.. There are . sufficient. stocks -in the
shops, in view of the. artificially high prices charged, to, avoid any likell..
hood of.zbwtages)and the rush of buying had for the Bulgarian authorities the
advantage of reducing the note issue, of employing surplus cash, and selling
off old and shoddy stock at an enormous profit since practically all retail
trade is nationalized.
k. Thee fact that there has an yet been no official announcement concerning a
currency reform does not mean that the leva will not be revalued.. A Soviet
co?ission.is.at present working-in Sofa on the question, and revaluation
my be expected to be announced in eallue. weeks' time, possibly during. April.
The result of the revaluation will be.to bring parity between the lava and theruble, and its object is. to strengthen the levy in terms-of other Satellite
currencies. so that Bulgaria can obtain her essential imports., especially fray
Extern Germny.
CLASSIFICATION SECRET/CONTROL -U.S. OFFICIALS ONLY
19115 MT CONTAINS INFORMATION AFFECTING TOE NATIONAL DEFENSE
OF TOE UNITED STATES, WITHIN THE MEANING OF TITLE 1B, SECTIONS 793
AND 794. OF THE U.S. CODE
AS AMENDED
ITS TRAN
M
.
.
S
ISSION OR RLTE
.-
X 1 , LATIOM OF. ITS CONTENTS TO OR RECEIPT BT AN UNAUTHORISED PERSON IS
STATE
ARMY
FBI
ION
Approved For Release 2006/08/08 : CIA-RDP82-00457R011800030004-8
 Approved For Release 2006/08/08 : CIA-RDP82-00457R011800030004-8
SECRET/C01TR0L.- U.S.. OFFICIALS OflLY
-2-
1,. I I Comment: In view of the. restrictions on the amount of .currency
any individual is legally allowed to have.inhis possession, the fact that
all currency over and above this ,small amount must be deposited, in the ban[,
and the fact that Bulgarian State Security checks up on . the sums expended
in the "free stores" to determine who is spending more than he is entit],.ed
to have, we doubt if the peasants have the "large reserves of liquid fug"
they traditionally used to have.,.
SECRE'I'JC 0:NTROL, - Ti.. LS.. OFFICIALS ONLY
Approved For Release 2006/08/08 : CIA-RDP82-00457R011800030004-8