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Kurt Sansone
Beware the Euro profiteers as retail outlets get accustomed to quoting prices in both Maltese Lira and Euro.
The price of a cappuccino in at least one coffee shop in Valletta is 20 per cent higher in Euro than what it is supposed to be according to the fixed exchange rate established by the Central Bank.
When announcing membership into the exchange rate mechanism last week, Central Bank Governor Michael Bonello said that the Maltese Lira would be pegged with the Euro at a fixed parity rate of 0.4293.
The fixed rate, he explained, would prevent people from speculating with the currency since it would be the rate Malta will use when adopting the Euro possibly in two years’ time.
The fixed rate is also supposed to create stability and avoid price confusion in the next two years, even if the Valletta coffee shop chose to establish its own exchange rate.
The Coffee Garden situated in Republic Street Valletta is printing its customer receipts in both Maltese Lira and Euro. But a cappuccino costing Lm0.50 is quoted as costing EUR1.39 when it should be costing EUR1.16 if the Central Bank’s rate is applied.
The EUR0.23 difference represents a hike of 20 per cent.
Although the Euro is not yet legal tender, Government has signalled its intention of wanting to introduce dual pricing in shops so that Maltese consumers would get used to the new currency prior to eventual adoption in 2008.
kurt@newsworksltd.com |
