The Maltese lira and the euro

In response to numerous queries it has been receiving on the status of the euro in Malta, the Central Bank of Malta last week drew the attention of the public to the following:

• The only legal tender currency in Malta is the Maltese lira. This will remain the case until the euro is introduced.

• The introduction of dual display of prices in Maltese liri and euro does not, in any way, imply that the public is being encouraged to effect transactions in euros rather than in Maltese liri. The dual display of prices is merely intended to serve as an information tool to enable the public to familiarise itself with euro equivalent amounts.

• The target date for Malta's adoption of the euro is January 1, 2008. A final decision on the date will be taken by the EU Council of Ministers around the middle of this year.

• Until the day of the changeover, the euro will remain a foreign currency. As with all foreign currencies, exchanging Maltese liri for euros involves the payment of exchange charges and other costs.

• There is no reason for Maltese liri, whether in cash or in the shape of financial assets such as bank deposits, to be converted into euro before the changeover to the euro as the national currency.

• Maltese lira-denominated deposits, government stocks and other assets, as well as bank loans, will automatically be converted into euro at the irrevocably fixed conversion rate on the euro adoption date at no charge. Fixed interest assets will continue to earn the interest rate prevailing at the time of their acquisition.

• It will be possible to convert Maltese lira notes and coins into euros for three months from the euro adoption date free of charge at banks. Furthermore, Maltese lira notes and coins will continue to be exchangeable for euro notes and coins free of charge at the Central Bank of Malta after euro adoption for ten years and for two years, respectively.

• Anyone who requires euro currency notes for travel and other such purposes should preferably acquire them from banks and other authorised dealers to avoid the risk of receiving counterfeit euro notes.

• In this regard, the Central Bank of Malta, in conjunction with the European Central Bank, will shortly begin training sessions for professional cash handlers to explain euro banknote security features. In the meantime, information about these features is already being made available from the Central Bank of Malta, bank branches and the NECC.