The Maltese lira, known in the Maltese language as the Lira Maltija, is the currency of Malta. It was previously known as the Maltese pound. The lira (plural liri) is abbreviated as LM, although the traditional £ sign may still be seen locally. The abbreviation "MTL" is also sometimes used. In English, the Maltese currency is still known as the pound.
History
In 1825, British currency was declared the sole legal tender, 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. Consequently, 1/3 farthing coins were issued for use in Malta until 1913.
Although using British coins, Malta did not decimalize with the UK in 1971. Instead, Malta adopted a decimal system in 1972, with 1000 mils and 100 cents to the lira. The name lira was used on banknotes beginning in 1973 and exclusively on both coins and banknotes since 1986.
Malta's entry into the European Union means that the lira is scheduled to be replaced by the euro by 1 January 2008, as part of the Economic and Monetary Union of the European Union, see [1]. However, Malta needs to meet some tough fiscal criteria before it can be admitted to the Eurozone.
Exchange Rate
The Maltese pound was on a par with the British Pound Sterling (GBP) until the late 1970s, since when the Maltese pound/lira has traditionally been worth around £1.60 sterling. After the Kuwaiti dinar, it is the second highest valued currency unit in the world being worth US$2.76790 as of February 26, 2006.
The currency entered the Exchange Rate Mechanism II on May 2, 2005, and its value must be maintained within a 15% band around the pivot value of 0.429300 LM per Euro.
Coins and Banknotes
The first decimal coinage contained the following denominations: 2 mils, 3 mils, 5 mils (these three minted in aluminium), 1 cent (bronze), 2 cents, 5 cents, 10 cents, 50 cents (cupronickel). The 25 cent coin was introduced in June, 1975 to commemorate Malta becoming a republic within the Commonwealth of Nations on December 13, 1974. The 1 Lira coin was introduced on May 19, 1986 replacing the former banknote [2]
Coins in circulation [3]
- 1 cent (showing the weasel)
- 2 cents (showing a branch of the olive tree)
- 5 cents (showing the fresh water crab)
- 10 cents (showing the lampuka fish)
- 25 cents (showing the ghirlanda)
- 50 cents (showing tulliera, an evergreen plant that grows in the Mediterranean region)
- 1 lira (the face shows the merill, the National bird)
Banknotes in circulation [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.)
See also
The content of this page is retrieved from http://en.wikipedia.org/wiki/Maltese_lira under GFDL
