Maltese lira

Maltese lira
lira Maltija (Maltese)
ISO 4217 code MTL
User(s) None, previously  Malta
Inflation 2.8%
Source The World Factbook, 2006 est.
ERM
Since 2 May 2005
Fixed rate since 2 May 2005
Replaced by €, cash 1 January 2008
€ = 0.429300 liri
Band pegged in practice, 15% de jure
Subunit
1/100 cent
1/1000 mil
Symbol ₤ and Lm
Plural liri
Coins 1, 2, 5, 10, 25 cents, 50 cents, 1 lira
Banknotes 1, 2, 5, 10 liri
Rarely used 20 liri
Central bank Central Bank of Malta
Website www.centralbankmalta.com
This infobox shows the latest status before this currency was rendered obsolete.

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.

Contents

History

Pound

In 1825, an imperial order-in-council introduced British currency to Malta, replacing a situation where various coinages circulated, including that issued in Malta by the Knights of St John. The pound was valued at 12 scudi of the local currency. This exchange rate meant that the smallest Maltese coin, the grano, was worth one third of a farthing (1 scudo = 20 tari = 240 grani). Consequently, ⅓ farthing coins were issued for use in Malta until 1913, alongside the regular British coinage. Amongst the British colonies which used the sterling coinage, Malta was unique in having the ⅓ farthing coin.

Between 1914 and 1918, wartime emergency paper money issues were made by the government.

Until 1972, it was subdivided into 20 shillings, each of 12 pence with 4 farthings to the penny; from May 1972 it was divided into 100 cents, and the 1 cent into 10 mils.[1]

Pre-decimal British sterling coinage continued to circulate in Malta for nearly a year after it was withdrawn in the UK due to decimilization on 15 February 1971. Then in 1972, a new, decimal Maltese currency, the lira, was introduced, in both coin and banknote form. The lira was initially equal to the pound sterling, however this parity did not survive long after the floating of sterling on 22 June 1972.

Banknotes

Emergency issues between 1914 and 1918 were in denominations of 5 and 10 shillings, 1, 5 and 10 pounds. In 1939, notes for 2½, 5 and 10 shillings and 1 pound were issued, to which 1 shilling notes were added in 1940. Note production continued after the Second World War in denominations of 10 shillings and 1 pound, with 5 pounds notes reintroduced between 1961–1963.

After the Central Bank of Malta was established by the Central Bank Act of 1967 and began operating on April 17, 1968,[2] the issuing body named on the banknotes switched from "Government of Malta" to "Central Bank of Malta." While the designs of the notes remained unchanged, the colors were changed. The Central Bank refers to this series as the "CBM first series". The CBM second series began with the introduction of lira-denominated notes on January 15, 1973.[2]

Lira

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.[3]

Euro changeover

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.

Exchange rate

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 2008, at 0.4293 lira to one euro.[4][5][6]

Coins

Main article: 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. 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).

Banknotes

On January 15, 1973,[7] 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.

Banknote Series the Maltese lira
Series Symbol Denominations Date of issue
2nd £M £M1, 5, 10 1973
3rd 1979
4th Lm Lm2, 5, 10, 20 1986
5th 1989

Banknotes of the fourth series were:

Fourth Series [1]
Image Value € equiv. Dimensions Main Colour Description Date of
Obverse Reverse Obverse Reverse Watermark first printing issue withdrawal lapse
[2] [3] Lm2 4.66 138 × 66.5 mm Red Agatha Barbara, map of Malta, the ship "Brigantin" (1531). Marsaxlokk harbour, gantry cranes Allegorical head 1967 (legal basis) 17 March 1986 15 June 1998 15 June 2008
[4] [5] Lm5 11.65 145 × 69 mm Blue Agatha Barbara, map of Malta, the ship "Xprunara" (1798) Mellieħa Bay, a woman engaged in lace making, a fisherman in the course of making fishing pots
[6] [7] Lm10 23.29 152 × 72.5 mm Green Agatha Barbara, map of Malta, "Tartana" (1740) Grand Harbour, Malta Drydocks 13 September 2000 13 September 2010
[8] [9] Lm20 46.59 159 × 76 mm Brown Agatha Barbara, map of Malta, the ship "Xambekk" (1743) Auberge de Castille, the monument dedicated to the Maltese worker in Msida 30 November 1992 2 December 2002
For table standards, see the banknote specification table.

Banknotes in circulation at the time of the introduction of the euro were:

Fifth Series [10]
Image Value € equiv. Dimensions Main Colour Description Date of
Obverse Reverse Obverse Reverse Watermark first printing issue withdrawal lapse
[11] [12] Lm2 4.66 138 × 66.5 mm Red, violet A woman holding a rudder, symbolising Malta in control of her own destiny, 3 doves symbolising peace, United Nations Emblem, the Central Bank of Malta Coat-of-Arms, mosaic designs from the period of Roman presence in Malta. The Banka Guratali at Mdina and at Rabat, Gozo Allegorical head 1967 (legal basis) 18 September 1989
Enhanced: 1 June 1994		 31 January 2008[8] 31 January 2018[8]
[13] [14] Lm5 11.65 145 × 69 mm Blue Mdina Gate, Torre dello Standardo, extract from Maltese declaration of rights
[15] [16] Lm10 23.29 145 × 72.5 mm Green 7 June 1919 Monument in Valletta, a national assembly meeting held on 7 June 1919, the day when four Maltese citizens were killed
[17] [18] Lm20 46.59 145 × 76 mm Brown, orange Giorgio Borg Olivier, raising of the Maltese flag, a marble tablet in Valletta commemorating Independence
For table standards, see the banknote specification table.

See also

References

  1. ^ Central Bank of Malta, The Coinage of Malta
  2. ^ a b Linzmayer, Owen (18 Aug 2011). "Malta". The Banknote Book. 1 (1 ed.). San Francisco, CA: BanknoteNews.com. http://www.banknotenews.com/files/e2c2277c9627d9503694340516fc480c-1655.php. Retrieved 2011-08-21. 
  3. ^ Press Releases and Speeches
  4. ^ "Cyprus and Malta to adopt euros". BBC News. 2007-07-10. http://news.bbc.co.uk/2/hi/business/6288084.stm. Retrieved 2007-08-20. 
  5. ^ "Commission hails approval of the adoption of the euro in Cyprus and Malta". europa.eu. European Commission. http://www.europa.eu/rapid/pressReleasesAction.do?reference=IP/07/1040&format=HTML&aged=0&language=EN&guiLanguage=en. Retrieved 2007-12-17. 
  6. ^ http://eurocoinscollectionmalta.freehostia.com
  7. ^ Linzmayer, Owen (18 Aug 2011). "Malta". The Banknote Book. 1 (1 ed.). San Francisco, CA: BanknoteNews.com. http://banknotenews.com/files/e2c2277c9627d9503694340516fc480c-1655.php. Retrieved 2011-08-21. 
  8. ^ a b European Central Bank. "The euro cash changeover in Malta". http://www.ecb.eu/bc/euro/changeover/malta/html/index.en.html. Retrieved 2008-01-02. 

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