Euro information

Here are this week's questions on euro information answered by Melvyn Mangion from the National Euro Changeover Committee:

How does one convert euro to Maltese lira?

To convert from euro to Maltese lira, multiply the euro by 0.4293, which is the central parity rate.

For example €100 multiplied by 0.4932 is equivalent to Lm42.93.

What is the central parity rate?

The central parity rate is a technical word that indicates the exchange rate at which the Maltese lira is converted into euro. The central parity rate has been set since May 2, 2005, and Government and the Central Bank of Malta have pledged to maintain it till the end of the ERM II period.

The central parity rate established by the Central Bank of Malta is Lm0.4293 for every euro.

Will the exchange rate change?

Since joining ERM II on May 2, 2005, the Maltese lira became fully pegged to the euro at the exchange rate of Lm0.4293 for every euro.

This fixed exchange rate has proved to be stable and has shown clear signs that it is sustainable in the longer term. The irrevocable fixed conversion rate, which means the unalterable fixed exchange rate between the lira and the euro, will be decided upon and established towards the middle of 2007.