Currency of Malta

The Maltese lira, known in the Maltese language as the Lira Maltija, is the currency of Malta. It was previously known as the Maltese pound until 1983, which was on a par with the British Pound Sterling (GBP) until the late 1960s, since when the Maltese lira has traditionally been worth around £1.60 sterling. After the Kuwaiti Dinar, it is the second highest valued currency unit in the world being worth US$3.11006 as of January 3, 2005.

Divided into 100 cents, the lira (plural liri) is abbreviated as LM, although the traditional £ sign may still be seen locally. The abbreviation "MTL" is also sometimes used. In English,the Maltese currency is still known as the Pound.

Initially, the cent was further subdivided into 10 mils. The first decimal coinage contained the following denominations: 2 mils, 3 mils, 5 mils (these three minted in aluminium), 1 cent (bronze), 2 cents, 5 cents, 10 cents, 50 cents (cupronickel). The 25 cent coin was introduced in June, 1975 to commemorate Malta becoming a republic within the Commonwealth of Nations on December 13, 1974. The 1 Lira coin was introduced on May 19, 1986 replacing the former banknote.

Coins in circulation

• 1 cent (showing the weasel)
  
• 2 cents (showing a branch of the olive tree)
  
• 5 cents (showing the fresh water crab)
  
• 10 cents (showing the lampuka fish)
  
• 25 cents (showing the Ghirlanda)
  
• 50 cents (showing Tulliera, an evergreen plant that grows in the Mediterranean region)
  
• 1 lira (the face shows the blue rock trush)
  

Banknotes in circulation

• 2 liri (depicting Banka Guratali at Mdina and at Rabat, Gozo)
  
• 5 liri (depicting The back of Mdina Gate, Torre dello Standardo, extract from Maltese Declaration of rights)
  
• 10 liri (depicting 7 June 1919 Monument in Valletta, a national assembly meeting held on 7 June 1919, the day when four Maltese citizens were killed)
  
• 20 liri (depicting Dr Borg Olivier, Prime Minister in 1964 when Malta was granted its Independence, raising of the Maltese flag and a marble tablet in Valletta commemorating Independence on 21st September 1964)

Malta's entry into the European Union means that the lira will be replaced by the Euro, by 2008 at the earliest, as part of the EMU process which is intended to bring all 10 EU members that joined in 2004 into the Euro by 2014 at the latest. However, Malta needs to meet some tough fiscal criteria before it can be admitted to the Euro.

The currency entered the Exchange Rate Mechanism II on May 2, 2005, and its value must be maintained within a 15% band around the pivot value of 0.429300 LM per Euro.