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MALTA
ISLAND - CURRENCY AND EXCHANGE RATE
The
lira (Maltese: lira Maltija, plural: liri, ISO 4217 code : MTL) was the currency
of Malta from 1972 until 31 December 2007. The lira was abbreviated as Lm, although
the traditional £ sign was often used locally. In English, the Maltese currency
was sometimes referred to as the pound.
The
euro replaced the Maltese lira as the official currency of Malta on 1 January
2008 at the irrevocable fixed exchange rate of 0.429300 MTL per 1 euro.
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, initially jointly with "pound",
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 was replaced
by the euro on 1 January 2008, as part of the Economic and Monetary Union of the
European Union.
The
Maltese lira was replaced by the euro as the official currency of Malta at the
irrevocable fixed exchange rate of 0.429300 MTL per 1 EUR. However, Maltese lira
banknotes and coins continued to have legal tender status and were accepted for
cash payments until 31 January 2008. Maltese liri were convertible free of charge
at all Maltese credit institutions until 30 March 2008. Maltese coins were convertible
at the Central Bank of Malta until 1 February 2010, and banknotes until 31 January
2018.
The Maltese pound/lira
was on a par with the British pound sterling (GBP) until the late 1970s, since
then the lira had been allowed to float, anchored to a basket of reserve currencies.
The lira had subsequently been worth around £1.60 sterling. After the Kuwaiti
dinar, it was the second-highest-valued currency unit in the world, being worth
US$3.1596 as of 28 April 2007. After the dollar weakened against other currencies
in mid 2006, the lira was worth US$3.35289 as of 16 December 2007.
The
currency entered the ERM II on 2 May 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
actual LM/euro 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.
Decimal
coinage was introduced in 1972 in denominations of 2, 3 and 5 mils, 1, 2, 5, 10
and 50 cents. The division of the lira into 100 cents (rather than the 240 pence
of the old system) meant that the cent was a relatively large unit - the United
Kingdom introduced the decimal ½ penny for this reason. Malta went "one
better" in introducing the mil. It will be noted that there was no 1 mil
coin. However, the coins that were provided (2, 3, and 5 mils) allowed goods to
be priced (and change given) for any number of mils. In 1975, a 25 cent coin 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 mils were withdrawn in 1994, although for some time only the 5 mils had been
seen (and then only rarely).
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 lira and 20 lira notes were introduced. Four series had
been issuing, designated the second to the fifth series by the Central Bank, with
the first series in the pound.
Malta
Island - Discover - Enjoy - Perfect vacation for everyone
Last
minute offers! Great hotel rates for SUMMER 2012! CALLCENTER: 004 0766 264 594