About the Maltese Lira

Country:	Malta
Currency:	Lira
Alias:	Maltese lira
ISO 4217 CODE:	MTL/470
Symbol:	Lm

The Maltese lira is the national currency of the Republic of Malta, an island nation situated in the Mediterranean Sea. Throughout its history, Malta had been claimed by various countries, and been a British possession for 150 years before being granted independence in 1964. While Malta was once a major shipping port for Suez Canal traffic, its modern economy is dominated by foreign trade, manufacturing, and especially tourism – the island has long been a favorite destination for vacationers from continental Europe. Malta became a member of the European Union in 2004, and intends to transition its currency to the euro.

Background of the Maltese Lira

The Maltese lire became the national currency of Malta in 1983, when it replaced the Maltese pound. The currency’s British heritage is primarily responsible for the preservation of the pound symbol (£) on a local basis, though the “LM” symbol is more frequently used on an international basis. The plural of lira is “liri.”

Malta is a member of the European Union, but has yet to satisfy the rigorous criteria for converting its national currency to the euro. In the meantime, the valuation of the lira is controlled by the Exchange Rate Mechanism (ERM) II, whereby EU1 = LM0.4239 +/- 15%. Prior to entering the ERM, the exchange rate for the lira was pegged to a basket of currencies consisting of the euro, the British pound sterling and the U.S. dollar, which helped to keep inflation under control. EU membership has also led to Malta’s elimination of import levies on most industrial products, greatly reducing the government’s protectionist stance on trade matters.

The lira is divided into 100 cents. Denominations for coins are 1c, 2c, 5c, 10c, 25c, 50c, and LM1. Denominations for banknotes are LM2, LM5, LM10, and LM20.

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