Euro adoption - A megaton challenge
It is calculated that there are over 900 tons of Maltese coins in circulation and by adding the new Maltese euro coins, the Maltese financial system will be handling over one megaton of coinage during the changeover.
Over the last few months, the Central Bank of Malta and the commercial banks have had ongoing discussions to ensure a smooth changeover to the euro.
Consultations have also taken place with the constituted bodies, the National Euro Changeover Committee and civil society representatives.
It clearly emerged that the handling of legacy currency coins is the main challenge during the cash management changeover process.
It is calculated that there are over 900 tons of Maltese coins in circulation and by adding the new Maltese euro coins, which become legal tender on January 1, 2008, the Maltese financial system will be handling over one megaton of coinage during the changeover.
This is certainly a logistical challenge!
In order to facilitate this challenge, the commercial banks are recommending the following:
• Any surplus Maltese coins should be deposited into a bank account between now and the end of December 2007. In the coming months, the national authorities shall be launching a dehoarding campaign;
• Debit or credit cards and internet banking should be used as a means of payment during the changeover period. Certainly, cards are a more secure means of payments and have a number of inbuilt consumer safeguards;
• The commercial community will be able to purchase euro coins retail starter packs as from December 1. They will have a value of €131 (Lm56.24). Euro coin personal starter packs become available from December 10 having a value of €11.24 (Lm 5). The personal and retail starter packs will be sold at commercial banks. No foreign exchange or other bank charges will be levied;
• January 2008 will be a dual circulation period. The commercial banks will accept Maltese lira notes and coins from January 2 till the end of March 2008. Following that, one would be able to exchange both Maltese lira notes and coins at the Central Bank of Malta. Maltese lira coins will be exchangeable up to two years after e-day and Maltese lira notes 10 years after e-day;
• In order to speed up the exchange process, it is recommended that coins should be presented to the commercial banks in separate bags per denomination;
• Maltese lira notes and coins do not need to be converted to euro from now. There is an adequate changeover period and most commercial banks will be making special arrangements for heavy coin users. Business customers are advised to contact their branch managers to make the necessary arrangements.
Consultations have also taken place with the constituted bodies, the National Euro Changeover Committee and civil society representatives.
It clearly emerged that the handling of legacy currency coins is the main challenge during the cash management changeover process.
It is calculated that there are over 900 tons of Maltese coins in circulation and by adding the new Maltese euro coins, which become legal tender on January 1, 2008, the Maltese financial system will be handling over one megaton of coinage during the changeover.
This is certainly a logistical challenge!
In order to facilitate this challenge, the commercial banks are recommending the following:
• Any surplus Maltese coins should be deposited into a bank account between now and the end of December 2007. In the coming months, the national authorities shall be launching a dehoarding campaign;
• Debit or credit cards and internet banking should be used as a means of payment during the changeover period. Certainly, cards are a more secure means of payments and have a number of inbuilt consumer safeguards;
• The commercial community will be able to purchase euro coins retail starter packs as from December 1. They will have a value of €131 (Lm56.24). Euro coin personal starter packs become available from December 10 having a value of €11.24 (Lm 5). The personal and retail starter packs will be sold at commercial banks. No foreign exchange or other bank charges will be levied;
• January 2008 will be a dual circulation period. The commercial banks will accept Maltese lira notes and coins from January 2 till the end of March 2008. Following that, one would be able to exchange both Maltese lira notes and coins at the Central Bank of Malta. Maltese lira coins will be exchangeable up to two years after e-day and Maltese lira notes 10 years after e-day;
• In order to speed up the exchange process, it is recommended that coins should be presented to the commercial banks in separate bags per denomination;
• Maltese lira notes and coins do not need to be converted to euro from now. There is an adequate changeover period and most commercial banks will be making special arrangements for heavy coin users. Business customers are advised to contact their branch managers to make the necessary arrangements.