More than Lm210 million worth of notes have been deposited since the Government began its de-hoarding exercise in preparation for the euro, Central Bank Governor Michael Bonello said yesterday.
The Central Bank had originally estimated that around Lm500 million worth of bank notes and Lm20 million worth of coins had been set aside. Speaking during a news conference, Mr Bonello said that although this figure has now decreased to Lm290 million, he was confident that more would be collected over the next few weeks. Around Lm55 million of this figure was composed of Lm20 notes, he said.
It is not cash generated through illegal means, but money which has not been declared for tax purposes.
The aim of the exercise was intended to prevent money from suddenly flooding the system as people start to exchange liri into euros. Maltese lira bank notes can be exchanged for euro any time in the next 10 years while coins can be exchanged for two years.
In the meantime, more than €5.3 million worth of coins have already been placed in circulation after being exchanged for Maltese currency in the form of starter kits.
The kits were provided for retailers and consumers to get them accustomed to the new currency, which comes into effect on Tuesday.
Official statistics show that more than 28,200 starter kits for businesses, each worth €131 (Lm56.24), were purchased since they became available on December 1. Nine days later, the banks started selling starter kits for consumers, each worth €11.65 (Lm5). Until yesterday, more than 136,000 consumer kits were purchased.
National Euro Changeover Committee chairman Joseph F.X. Zahra outlined the work carried out by the changeover committee since it was set up two years ago, paving the way for the introduction of the new currency.
He said that after the work undertaken in preparation for the euro adoption, the committee felt that not only was there awareness but that the Maltese were prepared for the change. In the run up to euro adoption, more than 490 laws had to be amended.
NECC executive director Alan Camilleri was even more positive: "Here at NECC there is an 'all-set-and-ready-to-go' feeling. We have left no stone unturned in our preparation for a smooth transition."
Mr Camilleri referred to the Eurobarometer survey, which showed that 76 per cent of Maltese have accepted the euro as Malta's new currency and are looking forward to embracing it. He said the campaign included more than 150 different adverts appearing in various newspapers and magazines. Moreover, euro assistants carried out more than 41,000 visits to shops, assisting retailers with the changeover.
On the Euro Observatory, the body set up to monitor the price movements and the dual display period, he said that out of the 320 cases had been investigated, 170 warnings were issued and only 18 received a second warning. Three fines were handed down.
Following the success of the FAIR scheme, the NECC also signed price stability agreements with various importers, distributors and companies who voluntarily pledged not to increase prices until March.
On his part, Parliamentary Secretary Tonio Fenech thanked the NECC for its sterling work and said that the committee will be converted into a consumer agency in February or March to continue overseeing the transition from lira to euro.
Mr Fenech said he was confident that there would not be any price increases as a direct result of the euro changeover and appealed to the Maltese to "forget the lira as quickly as possible" in order to ensure a smooth and swift transition.