Maltese lira

The lira (Template:Langx, plural: liri, ISO 4217 code: MTL) or pound (until ca. 1986 in English, code Template:ISO 4217) was the currency of Malta from 1972 until 31 December 2007. One lira was divided into 100 cents, each of 10 mils. After 1986 the lira was abbreviated as Lm, although the original Template:Char sign continued to be used unofficially. In English the currency was still frequently called the pound even after its official English language name was changed to lira.

The euro replaced the lira as the official currency of Malta on 1 January 2008 at the irrevocable fixed exchange rate of €1 per Lm 0.4293, or approximately €2.33 per Lm 1.

History

Sterling

In 1825, an imperial order-in-council introduced sterling coinage to Malta, replacing a system under which 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, [[Third farthing|Template:Frac-farthing (Template:Frac-penny) coins]] were issued for use in Malta until 1913, alongside the regular sterling coinage. Amongst the British colonies which used sterling coinage, Malta was unique in issuing a Template:Frac-farthing coin.

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

Until 1972, the pound was divided into 20 shillings, each of 12 pence with 4 farthings to the penny; from May 1972 it was decimalised into 100 cents, and each cent into 10 mils.<ref>Central Bank of Malta Template:Webarchive, The Coinage of Malta</ref>

Pre-decimal sterling coinage continued to circulate in Malta for nearly a year after it was withdrawn in the UK due to decimalisation as Malta did not decimalise until 1972. Although the Maltese pound was initially equal to its sterling counterpart, 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. In 1940, notes dated 13 September 1939 in denominations of 2/6, 5/–, 10/– and £1 were issued, followed late in the year by a provisional 1/– note overprinted on old 2/– notes dated 20 November 1918.<ref name="The Banknote Book">Template:Cite book</ref> Note production continued after the Second World War in denominations of 10/- and £1, with £5 notes reintroduced between 1961 and 1963.

After the Central Bank of Malta was established by the Central Bank Act of 1967 and began operating on April 17, 1968,<ref name="The Banknote Book"/> 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.<ref name="The Banknote Book"/>

Lira

Banknotes issued by the Government of Malta and then by the Central Bank of Malta were written in English up to 1972. From 1973 to 1985, they were written in Maltese on the obverse (with the currency identified as "lira"), and in English on the reverse (identifying the currency as pound). From 1986 to 2007, Maltese was used on both sides.<ref>Banknote World - Malta</ref>

Although exclusively using British coins at that time, Malta did not decimalise with the UK in 1971. Instead, decimalisation occurred a year later, on the "pound and mil" system, dividing the pound into 1,000 mils and 100 cents. The Maltese name "lira" and the English name "pound" were used concurrently on banknotes until 1986, when "lira" became the official name of the currency in both languages. Mil denominated coins 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.<ref>Press Releases and Speeches Template:Webarchive</ref>

Euro changeover

The Maltese lira was replaced by the euro as the official currency of Malta at the irrevocable fixed exchange rate of Lm 0.429300 per €1. However, Maltese lira banknotes and coins continued to have legal tender status and were accepted for cash payments until 31 January 2008. Maltese lira 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 remained convertible until 31 January 2018.

Exchange rate

File:Euro exchange rate to MTL.svg

The cost of one euro in Maltese lira's (from 1999 till 2007).

Since the Maltese currency was considered a local issue of sterling rather than an entirely separate currency until 13 December 1971, the two currencies maintained an exact 1:1 equivalence with each other. Afterwards, the Maltese currency was allowed to float, anchored to a basket of reserve currencies. The lira had subsequentlyTemplate:When been worth around GBP 1.60. 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 Lm 0.429300 per euro. The Central Bank of Malta and Maltese Government unilaterally decided to keep the actual Lm/€ 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,<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> at Lm 0.4293 to one euro.<ref>Template:Cite news</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>

Coins

File:Pieces 2 cent de malte.png

Maltese 2 cent coin, 1976

{{#invoke:Labelled list hatnote|labelledList|Main article|Main articles|Main page|Main pages}}

Decimal coinage was introduced in 1972 (one year after the United Kingdom) based on the "pound and mil" system proposed in 1855 by Sir William Brown MP in denominations of 2, 3, and 5 mils, 1, 2, 5, 10, and 50 cents. There was no one-mil coin, although, the coins that were provided (2m, 3m, and 5m) allowed goods to be priced (and change given) for any number of mils. In 1975, a 25c coin was introduced.

A new coinage was issued in 1986 in denominations of 1c, 2c, 5c, 10c, 25c and 50c and Lm 1. 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 15 January 1973,<ref name="The Banknote Book"/> banknotes were introduced, denominated in liri on the obverse and pounds on the reverse, in denominations of £M 1, £M 5 and £M 10. In 1986, £M1 notes were replaced by coins and Lm 2 and Lm 20 notes were introduced.

First series (1967)<ref name="cbmtimeline">{{#invoke:citation/CS1|citation										CitationClass=web }}</ref>
Image	Value	Dimensions (mm)	Main colour		Description		Issue	Withdrawn
					Obverse	Reverse
	10/-	133 × 70		Red	Elizabeth II; George's Cross	Mġarr, Gozo Għajnsielem church, Gozo	13 June 1968	30 June 1972
	£m 1	139 × 76		Green		Marsa Industrial Estate	24 September 1969	15 April 1981
	£m 5	145 × 82		Brown		Grand Harbour, Valletta	13 June 1968
Second series (1973)Template:R
	£m 1	138 × 69		Green	Central bank coat of arms; map of Malta	St Paul's Cathedral, Mdina	15 January 1973	1982
	£m 5	145 × 78		Blue		Yacht marina, Marsaxlokk		1983
	£m 10	151 × 85		Brown		Grand Harbour, Valletta
Third series (1979)Template:R
	£m 1	135 × 65		Brown	Coat of arms; Il-Gardjola tower	New university	30 March 1979	1993
	£m 5	145 × 77		Violet	Coat of arms; Statue of culture	Marsa Industrial Estate
	£m 10	152 × 85		Pink	Coat of arms; Lady Justice, Castellania	Malta Dockyard
Template:Standard banknote table notice

Banknotes of the fourth series were:

Fourth series (1986)<ref name="centralbankmalta1">{{#invoke:citation/CS1|citation											CitationClass=web }}</ref>
Image	Value	Euro equivalent	Dimensions (mm)	Main colour		Description		Issue	Withdrawn	Lapse
						Obverse	Reverse
<ref>[1] Template:Webarchive</ref><ref>[2] Template:Webarchive</ref>	Lm 2	€4.66	138 × 66.5		Red	Agatha Barbara; Brigantine (1531).	Marsaxlokk harbour; gantry cranes	17 March 1986	15 June 1998	15 June 2008
<ref>[3] Template:Webarchive</ref><ref>[4] Template:Webarchive</ref>	Lm 5	€11.65	145 × 69		Blue	Agatha Barbara; Speronara (1798)	Mellieħa Bay; fishing pot and lace making
<ref>[5] Template:Webarchive</ref><ref>[6] Template:Webarchive</ref>	Lm 10	€23.29	152 × 72.5		Green	Agatha Barbara; Tartana (1740)	Grand Harbour; Malta Dockyard		13 September 2000	13 September 2010
[7]	Lm 20	€46.59	159 × 76		Brown	Agatha Barbara; Xebec (1743)	Auberge de Castille; Worker's monument, Msida		30 November 1992	2 December 2002
Template:Standard banknote table notice

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

Fifth series (1989–1994)<ref name="centralbankmalta1"/>
Image	Value	Euro equivalent	Dimensions (mm)	Main colour		Description		Issue	Withdrawn	Lapse
						Obverse	Reverse
[8]	Lm 2	€4.66	138 × 66.5		Red	Melita; Roman mosaics; three doves, UN emblem, Central bank coat of arms	Banca Giuratale, Mdina; Banca Giuratale, Victoria, Gozo	18 September 1989 1 June 1994	31 January 2008<ref name="ECBChangeover">{{#invoke:citation/CS1|citation	CitationClass=web }}</ref>	31 January 2018<ref name="ECBChangeover"/>
<ref>[9] Template:Webarchive</ref>	Lm 5	€11.65	145 × 69		Blue		Mdina Gate, Torre dello Standardo; Maltese declaration of human rights
<ref>[10] Template:Webarchive</ref>	Lm 10	€23.29	152 × 72.5		Green		Sette Giugno monument, Valletta; National assembly meeting
<ref>[11] Template:Webarchive</ref>	Lm 20	€46.59	159 × 76		Brown orange		George Borg Olivier, flag raising; Independence marble tablet
Template:Standard banknote table notice

See also

• Banknotes of the Anglo-Egyptian Banking Company Limited (Malta)
• Maltese euro coins
• Euro gold and silver commemorative coins (Malta)
• Economy of Malta

External links

• Historical banknotes of Malta Template:In lang