MALTESE LIRA

The 'lira' (, plural: ''liri'', ISO 4217 code : ''MTL'') is the currency of Malta. The lira is abbreviated as Lm, although the traditional ₤ sign may still be seen locally. In English, the Maltese currency may still be referred to as the pound.
The lira will be replaced by the euro as the official currency of the Republic of Malta on 1 January 2008 at the irrevocable fixed exchange rate of 0.429300 MTL per 1 euro.

Contents

History

Exchange rate

Coins

Banknotes

Euro changeover

See also

References

External links

History

Before 1972, the pound circulated, composed of British coins and banknotes supplemented by Maltese notes. Although using British coins, Malta did not decimalize with the UK in 1971. Instead, it adopted a decimal system in 1972, based on the lira (equal to the pound) subdivided into 1000 mils or 100 cents. The name lira was used on banknotes beginning in 1973 and exclusively on both coins and banknotes since 1986. Mils were removed from circulation in 1994.
On entry into the European Union, Malta agreed to adopt the euro. The lira will be replaced by the euro on 1 January 2008, as part of the Economic and Monetary Union of the European Union.^[1]

Exchange rate

The Maltese pound/lira was on a par with the British pound sterling (GBP) until the late 1970s, since when the lira has been allowed to float, anchored to a basket of reserve currencies. The lira has subsequently been worth around £1.60 sterling. After the Kuwaiti dinar, it is the second highest valued currency unit in the world, being worth US$3.1596 as of April 28, 2007. After the dollar weakened against other currencies in mid 2006, the lira was worth US$3.03 on 10 February 2007.
The currency entered the ERM II on May 2, 2005, by which its value had to be maintained within a 15% band around the central parity rate of 0.429300 LM per euro. The Central Bank of Malta and Maltese Government unilaterally decided to keep the effective exchange rate equal to the central parity rate (i.e., doing away with the 15% band) throughout the ERM II period.
The irrevocable fixed conversion rate was established by the ECOFIN on 10 July 2007, at 0.4293 lira to one euro.^[2][3]

Coins

Main articles: Coins of the Maltese lira

Decimal coinage was introduced in 1972 in denominations of 2, 3 and 5 mils, 1, 2, 5, 10 and 50 cents. In 1975, the 25 cents coins was introduced. A new coinage was issued in 1986 in denominations of 1, 2, 5, 10, 25 and 50 cents and 1 lira. A third series was introduced in 1991 due to the change in Malta's coat of arms. The second and third series of coins are currently in circulation.

Banknotes

In 1973, banknotes were introduced, denominated in liri on the obverse and pounds on the reverse, in denominations of 1, 5 and 10 liri. In 1986, 1 lira notes were replaced by coins and 2 and 20 liri notes were introduced. Banknotes currently in circulation are:^[4]

★ 2 liri (depicting Banka Guratali at Mdina and at Rabat, Gozo)

★ 5 liri (depicting The back of Mdina Gate, Torre dello Standardo, extract from Maltese Declaration of rights)

★ 10 liri (depicting 7 June 1919 Monument in Valletta, a national assembly meeting held on 7 June 1919, the day when four Maltese citizens were killed)

★ 20 liri (depicting Dr Borg Olivier, Prime Minister in 1964 when Malta was granted its Independence, raising of the Maltese flag and a marble tablet in Valletta commemorating Independence on 21st September 1964)

Euro changeover

The Maltese lira will be replaced by the euro as the official currency of Malta on 1 January, 2008 at the irrevocable fixed exchange rate of 0.429300 MTL per 1 EUR.
However, Maltese lira banknotes and coins will continue to have legal tender status and will be accepted for cash payments until 31 January, 2008. Maltese liri will be convertible free of charge at all Maltese credit institutions until 30 March, 2008.
Maltese coins will be convertible at the Central Bank of Malta until 1 February, 2010, and banknotes until 31 January, 2018.

See also

★ Other currencies or coins named lira

★ Maltese euro coins

★ Highest valued currency unit

★ Economy of Malta

References

1. http://www.centralbankmalta.com/site/council_eu_letter.htm
2. Cyprus and Malta to adopt euros
3. http://www.europa.eu/rapid/pressReleasesAction.do?reference=IP/07/1040&format=HTML&aged=0&language=EN&guiLanguage=en
4. http://www.centralbankmalta.com/site/currency2e.html

External links