Prices in euro

Anna Mallia (May 16) queried the practice of incorporating bank and other charges in the euro price equivalent of goods, even suggesting that such practices are abusive. The euro is a foreign currency just like the dollar, the yen and the sterling and will remain so until it becomes Malta's legal currency. Until that date or unless otherwise leglislated, additional charges can be applied to the conversion rate in the same manner such charges are applied in the case of other foreign currencies.

It should therefore be no surprise that different charges are applied by different operators since each operator would have to cover their own costs of acquiring or disposing of the foreign currency.

This notwithstanding, the National Euro Changeover Committee (NECC) recognises that the dual display of prices in euro and Maltese lira needs to be regulated. To date, the NECC has issued guidelines (NECC/0001/06) relating to the optional display of a price in euro. The aim of such guidelines is to outline how traders are to display prices of goods and/or services should these prices be translated from Maltese liri into euro, prior to the obligatory dual display period. Once the Euro Adoption Act is enacted, such guidelines or parts thereof will be published as legal notices and thus become enforceable.

It should be noted that until the date of adoption of the euro, consumers can never be obliged to pay in euro. Similarly, traders can never be obliged to accept payments in euro.