Bulgarian companies lead Europe with the highest average value for deals hedged against foreign exchange risk on the platform

● Ranking 1st among iBanFirst’s 10 European markets by average value of forward transactions (€564,000), Bulgarian companies have entrusted iBanFirst with some of the largest deals.

● In Bulgaria, fintech adoption has reached the early majority phase, with companies of all sizes embracing and staying loyal to fintech solutions, while in Western countries, their peers still prefer traditional providers.

● The US dollar is the main currency used by Bulgarian companies for international payments, followed by the Romanian leu and more exotic currencies like Chinese yuan (CNY) and South African rand (ZAR), as fintech solutions become key for non-euro transactions.

Bulgarian companies are ahead of their European peers in terms of size of deals hedged against foreign exchange risk through iBanFirst, a leading provider of fx and payments solutions for businesses, ranking first. In the first ten months of 2024, Bulgaria’s average deal size reached €564,000, significantly above the group-wide average of €196,000 across its 10 European markets, as even some of the country’s largest corporations are adopting fintech solutions. Bulgarian companies, regardless of size, are increasingly using hedging tools provided by fintech platforms to secure exchange rates for future international transactions, ensuring better cost predictability and stabilizing profit margins.

Bulgaria is also surpassing the iBanFirst Group in forward transaction volume growth. In the first 10 months of 2024, the total value of forward transactions by Bulgarian companies rose by 54%. In contrast, the Group's overall growth rate was 27%. The total value of foreign exchange transactions by Bulgarian companies increased by 145%, from 231 million euros to over 564 million euros, the highest increase among all countries.

"We're witnessing a shift where Bulgarian businesses, regardless of size, are adopting digital solutions to streamline operations, mitigate risks, and secure more favorable exchange rates”, said Dean Todorov, Country Manager at iBanFirst Bulgaria. “This agility and forward-thinking mindset, even among the country’s largest corporations, sets Bulgaria apart in the European market. As a result, Bulgaria now leads iBanFirst with the highest average value for deals hedged against FX risk."

Hedging tools, such as forward contracts, help Bulgarian companies with international trade mitigate foreign exchange risk and currency volatility by locking in a fixed exchange rate for future payments to their suppliers, offering stability amid currency market fluctuations.

As more Bulgarian companies are involved in import-export operations or focus on cross-border expansion, they are adopting fintech solutions earlier than many of their Western European counterparts, allowing them to access global markets faster, operate more efficiently, and achieve significant cost savings. The local fintech market is in the early majority phase, demonstrating that fintechs have proven to be reliable, even encouraging risk-averse businesses to integrate these technologies into their operations.

Top currencies used by Bulgarian companies for international payments

Bulgarian businesses using iBanFirst need mainly US dollars (USD) for international payments, followed by regional currencies, such as the Romanian leu (RON), and more exotic currencies like the Chinese yuan (CNY) and South African rand (ZAR). This trend reflects the fact that traditional providers remain competitive in EUR-BGN exchanges, while fintech solutions like iBanFirst are crucial for businesses dealing with trade partners in other currencies.

The top countries Bulgarian companies pay through iBanFirst include China, Turkey, and Romania, while the USA, Romania, and Vietnam are the leading sources of incoming payments. According to recent data from the National Statistical Institute[1], Turkey, Romania, and China are among Bulgaria’s top 5 import partners. On the export side, Romania and the USA remain significant partners, while Vietnam is not among the largest, highlighting the role of fintech in facilitating Bulgaria’s diverse trade network, including niche markets.

[1] National Statistical Institute - Exports, imports and trade balance of Bulgaria with main partners