Over €90 million in lira still in circulation

Over €90 million in Maltese currency remains in circulation, 11 months after Malta introduced the euro.

A total of €25.6 million (Lm11m) in coins, and around €65.2 million (Lm28m) in notes remain unconverted, Central Bank Governor Michael Bonello tells The Sunday Times in an interview today (pages 10, 11).

The Central Bank will continue to exchange coins until February 1, 2010, and banknotes until January 31, 2018.

"Money is still coming in but at a very slow pace," the governor says.

Mr Bonello says experience suggests there is always a considerable proportion of currency which will never be returned. Some of the higher denomination notes might still be stashed away, and maybe even forgotten.

Malta introduced the euro on January 1 following an intense campaign to convince hoarders to exchange their cash for the new currency.

More than €489 million (Lm210m) worth of notes has been deposited since the government began its de-hoarding exercise in preparation for the euro, the governor said on the eve of its introduction.

The Central Bank had estimated that around €675 million (Lm290m) worth of bank notes remained in circulation by the end of 2007.

The lira was introduced in 1972 when Malta had abandoned the British system of pounds, shillings and pence and adopted decimalisation. The pound in Malta was renamed the Malta Lira in 1983.