Euro adoption - Lifting of euro/Lm transaction costs
The Maltese lira will remain Malta's legal tender till the end of December 2007 and will be replaced by the euro on January 1.It should be appreciated, therefore, that the euro will remain a foreign currency until December 31, 2007, and that the...
The Maltese lira will remain Malta's legal tender till the end of December 2007 and will be replaced by the euro on January 1.
It should be appreciated, therefore, that the euro will remain a foreign currency until December 31, 2007, and that the exchange of Lm for euro, or vice versa, will continue to attract an exchange charge until that date.
However, in order to facilitate the euro adoption process as e-day approaches, the banks have agreed that no charges will apply for the deposit of euro notes into euro accounts as stated in legal notice 4 of 2007. As from the setting of the irrevocable exchange rate on July 10, the banks will accept deposits of euro cash notes at that rate when such notes are deposited into Maltese lira accounts by business customers. This only applies to off-the-counter payments and all financial intermediaries are not covered by these arrangements.
Furthermore as from December 1, 2007, the banks will undertake all exchanges from Lm to euro, and vice-versa, at the irrevocably fixed exchange rate without the application of any exchange charges (normal commission and other banking charges on specific transactions will, of course, continue to apply). One should remember the exchange of Maltese lira to euro will commence after e- day. In line with the "Big Bang" approach, banks will automatically convert all Lm denominated accounts, including credit card accounts, into euro on e -day. This will be done free of charge at the irrevocably fixed exchange rate. The first account statement of 2008 will provide details of the conversion of Lm balances to euro on e-day.
• John Cassar Torreggiani is the executive head responsible for the euro changeover programme at Bank of Valletta.
It should be appreciated, therefore, that the euro will remain a foreign currency until December 31, 2007, and that the exchange of Lm for euro, or vice versa, will continue to attract an exchange charge until that date.
However, in order to facilitate the euro adoption process as e-day approaches, the banks have agreed that no charges will apply for the deposit of euro notes into euro accounts as stated in legal notice 4 of 2007. As from the setting of the irrevocable exchange rate on July 10, the banks will accept deposits of euro cash notes at that rate when such notes are deposited into Maltese lira accounts by business customers. This only applies to off-the-counter payments and all financial intermediaries are not covered by these arrangements.
Furthermore as from December 1, 2007, the banks will undertake all exchanges from Lm to euro, and vice-versa, at the irrevocably fixed exchange rate without the application of any exchange charges (normal commission and other banking charges on specific transactions will, of course, continue to apply). One should remember the exchange of Maltese lira to euro will commence after e- day. In line with the "Big Bang" approach, banks will automatically convert all Lm denominated accounts, including credit card accounts, into euro on e -day. This will be done free of charge at the irrevocably fixed exchange rate. The first account statement of 2008 will provide details of the conversion of Lm balances to euro on e-day.
• John Cassar Torreggiani is the executive head responsible for the euro changeover programme at Bank of Valletta.