iMalta.com

About Currency in Malta:

The official Maltese currency is the Euro, as of January 1, 2008. Previously, the official Maltese currency was the Maltese Lira (plural: Liri) , equivalent to 100 (one hundred) cents. One can also refer to the Lira as Maltese Pound. One cent was equivalent to 10 (ten) mils up till a few years ago, however this denomination of currency was withdrawn from circulation.

The Maltese lira was replaced by the euro as the official currency of Malta on 1 January 2008 at the irrevocable fixed exchange rate of 0.429300 MTL per 1 EUR. However, Maltese lira banknotes and coins continue to have legal tender status and be accepted for cash payments until 31 January 2008. Maltese liri will be convertible free of charge at all Maltese credit institutions until 30 March 2008. Maltese coins will be convertible at the Central Bank of Malta until 1 February 2010, and banknotes until 31 January 2018.

The One Maltese lira was available only as a coin form, while higher denominations existed in note form, including the two liri, five liri, ten liri, and twenty liri. The coinage consisted of the One Maltese Lira, fifty cents, twenty cents, ten cents, five cents, two cents and one cent. A number of gold and silver coins are also minted.

MALTESE CURRENCY EXCHANGE

One can change Maltese currency into and from Foreign Currency easily at most banks and foreign exchange bureaus in the island and its sister island Gozo. The two main Maltese Banks, HSBC and Bank of Valletta have a branch in the customs area at the airport. One can also exchange currency in some hotels, and larger shops and restaurants. Automated foreign exchange machines and cash dispensers are available at various locations on the islands.

EXCHANGE RATE:

The Maltese pound/lira was on a par with the British pound sterling (GBP) until the late 1970s, since then the lira had been allowed to float, anchored to a basket of reserve currencies. The lira had subsequently been worth around £1.60 sterling. After the Kuwaiti dinar, it was the second highest valued currency unit in the world, being worth US$3.1596 as of 28 April 2007. After the dollar weakened against other currencies in mid 2006, the lira was worth US$3.35289 as of 16 December 2007.

The currency entered the ERM II on 2 May 2005, by which its value had to be maintained within a 15% band around the central parity rate of 0.429300 LM per euro. The Central Bank of Malta and Maltese Government unilaterally decided to keep the effective exchange rate equal to the central parity rate (i.e., doing away with the 15% band) throughout the ERM II period.

The irrevocable fixed conversion rate was established by the ECOFIN on 10 July 2007, at 0.4293 lira to one euro.

CREDIT CARDS

MasterCard, American Express, Diners Club and Visa are accepted widely in nearly all hotels, restaurants and shops. Automated Teller Machines are also very much widely available for cash dispensal. Check with your credit card company for details of merchant acceptability and other services which may be available.

TRAVELLERS' CHEQUES:

Travellers' cheques are exchanged in the normal authorised institutions. To avoid additional exchange rate charges, travellers are advised to take travellers cheques in Pounds Sterling. When changing traveller's cheques, remember to take along identification as it will be required. No commission is charged on the exchange of traveller's cheques. They are accepted at most hotels, but shops and restaurants will only take cash or credit cards.

CURRENY RESTRICTIONS:

The import and export of foreign currency is unlimited, subject to declaration. The import of local currency is limited to Lm50 while the export of local currency is limited to Lm25.

SERVICE CHARGES:

Service charges are usually included in the bill, but it is customary to give a 10-15% tip in restaurants and hotels and 10% to taxi drivers.

Some currency information was obtained courtesy of Wikipedia.