Euro conversion rates

I refer to the letter by Albert Dimech of Sliema (April 20). This is typical of the confusion which we are about to face on conversion to the euro.

The official rate which Mr Dimech quotes is the Central Bank parity rate. However, commercial banks, and in this case Maltapost, have different buying and selling rates.

Until such time as the euro becomes the national currency of Malta, it is treated like any foreign currency and the official rate does not apply at banks (or in this case Maltapost). The banks buy and sell the euro at commercial rates. The same would have happened if, for example, Mr Dimech received a payment in sterling or dollars. The conversion would not have been made at the Central Bank parity rate but at the prevailing commercial rate.

This is just the beginning. Wait until dual pricing starts in the shops. Unless the National Euro Changeover Committee and the government make it amply clear once and for all, we will see no end to unfounded complaints from uninformed consumers who will think that they are being cheated by shopkeepers and businessmen.