Euro adoption - Now... the irrevocable exchange rate
Last Tuesday, ECOFIN, the European Council of Ministers of Economic and Financial Affairs, confirmed Malta's adoption of the euro on the January 1, 2008. During this meeting, the Maltese lira central parity rate was also confirmed as the irrevocable...
Last Tuesday, ECOFIN, the European Council of Ministers of Economic and Financial Affairs, confirmed Malta's adoption of the euro on the January 1, 2008. During this meeting, the Maltese lira central parity rate was also confirmed as the irrevocable fixed conversion rate.
This important decision clearly removes any speculation of a devaluation of the Maltese lira against the euro.
Until the end of December, the Maltese lira will remain legal tender whilst the euro will become legal tender on January 1. With the fixing of the irrevocable exchange rate, the banks have lifted foreign exchange charges for the deposit of euro notes into Maltese lira accounts for the business retail community only.
On December 1, the banks shall make available to the business community, euro coin starter packs having a value of €131 (Lm56.24). On that day the exchange rate commissions on Maltese lira/euro and euro/ Maltese lira transactions will be removed.
To facilitate the changeover, the banks shall be supplying the business retail community with €5 notes during December 2007. As from e-day there shall be a dual circulation period of one month, that is throughout January 2008. The banks shall be accepting Maltese notes and coins from the beginning of January till the end of March of 2008.
After the end of March, clients would need to change Maltese lira notes and coins at the Central Bank of Malta. The banks recommend that you exchange Maltese lira notes into euro ones from authorised foreign exchange dealers only, thereby eliminating any risks of counterfeits. In this regard, it is recommended that one gets familiar with the euro notes security features.
• Mr Cassar Torreggiani is the executive head responsible for the euro changeover programme at Bank of Valletta.
This important decision clearly removes any speculation of a devaluation of the Maltese lira against the euro.
Until the end of December, the Maltese lira will remain legal tender whilst the euro will become legal tender on January 1. With the fixing of the irrevocable exchange rate, the banks have lifted foreign exchange charges for the deposit of euro notes into Maltese lira accounts for the business retail community only.
On December 1, the banks shall make available to the business community, euro coin starter packs having a value of €131 (Lm56.24). On that day the exchange rate commissions on Maltese lira/euro and euro/ Maltese lira transactions will be removed.
To facilitate the changeover, the banks shall be supplying the business retail community with €5 notes during December 2007. As from e-day there shall be a dual circulation period of one month, that is throughout January 2008. The banks shall be accepting Maltese notes and coins from the beginning of January till the end of March of 2008.
After the end of March, clients would need to change Maltese lira notes and coins at the Central Bank of Malta. The banks recommend that you exchange Maltese lira notes into euro ones from authorised foreign exchange dealers only, thereby eliminating any risks of counterfeits. In this regard, it is recommended that one gets familiar with the euro notes security features.
• Mr Cassar Torreggiani is the executive head responsible for the euro changeover programme at Bank of Valletta.