The euro in my pocket
The banks will be at the core of the cash changeover operation which will involve the challenging tasks of distributing euro notes and coins, while at the same time withdrawing Maltese lira cash from circulation.The period from January 1 to January 31,...
The banks will be at the core of the cash changeover operation which will involve the challenging tasks of distributing euro notes and coins, while at the same time withdrawing Maltese lira cash from circulation.
The period from January 1 to January 31, 2008 will be a dual circulation period, during which Maltese lira notes and coins will circulate alongside euro notes and coins. Businesses will have to accept both euro and Maltese lira in cash, but give change exclusively in euro. For this purpose, businesses will need to carry an adequate "cash float" of euro notes and coins in preparation for e-day.
As from mid-December, retailers or other small businesses will be able to purchase from banks one or more starter kits containing euro coins to a value of approximately Lm 56.24 (e131) while personal start kits will have a value of Lm5 (e11.65).
Businesses requiring larger amounts of cash will have to make sub-frontloading arrangements with their bankers. Such arrangements will be subject to the precondition that the euro notes and coins so provided cannot be distributed to the public before e-day. The terms for reimbursing/adequately securing their bank for euros provided will also have to be agreed.
Banks will continue to accept Maltese lira cash deposits into customers' euro accounts at no charge up till March 31, 2008. During this three-month period after e-day, banks will also exchange Maltese lira cash into euro notes and coins for their customers, free of charge and without limitation, subject only to two business days, notice being given if the amount to be exchanged exceeds a household amount of Lm250.
Cash exchanges for non-bank customers will also be effected free of charge during that period, but limited to an amount of Lm250 per person.
After March 31, 2008, Maltese lira notes and coins will remain redeemable at the Central Bank of Malta at the irrevocably fixed rate for 10 and two years respectively after the end of the dual circulation period.
• Mr Cassar Torreggiani is executive head, Euro Changeover Programme, Bank of Valletta.
The period from January 1 to January 31, 2008 will be a dual circulation period, during which Maltese lira notes and coins will circulate alongside euro notes and coins. Businesses will have to accept both euro and Maltese lira in cash, but give change exclusively in euro. For this purpose, businesses will need to carry an adequate "cash float" of euro notes and coins in preparation for e-day.
As from mid-December, retailers or other small businesses will be able to purchase from banks one or more starter kits containing euro coins to a value of approximately Lm 56.24 (e131) while personal start kits will have a value of Lm5 (e11.65).
Businesses requiring larger amounts of cash will have to make sub-frontloading arrangements with their bankers. Such arrangements will be subject to the precondition that the euro notes and coins so provided cannot be distributed to the public before e-day. The terms for reimbursing/adequately securing their bank for euros provided will also have to be agreed.
Banks will continue to accept Maltese lira cash deposits into customers' euro accounts at no charge up till March 31, 2008. During this three-month period after e-day, banks will also exchange Maltese lira cash into euro notes and coins for their customers, free of charge and without limitation, subject only to two business days, notice being given if the amount to be exchanged exceeds a household amount of Lm250.
Cash exchanges for non-bank customers will also be effected free of charge during that period, but limited to an amount of Lm250 per person.
After March 31, 2008, Maltese lira notes and coins will remain redeemable at the Central Bank of Malta at the irrevocably fixed rate for 10 and two years respectively after the end of the dual circulation period.
• Mr Cassar Torreggiani is executive head, Euro Changeover Programme, Bank of Valletta.