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The Central Bank of Malta has reiterated that the Maltese lira remains the only legal tender currency in Malta and will remain so until Malta adopts the euro.
“Until that time the euro is to be treated as a foreign currency like any other. It should also be kept in mind that the introduction of dual display of prices in euro and Maltese liri does not, in any way, imply that the euro has thereby obtained legal tender status in Malta,” the Central Bank said in reaction to the current debate over dual display.
The CBM said that dual display is not being introduced to encourage the public to effect transactions in euro rather than in Maltese liri, or to convert Maltese liri into euro ahead of euro adoption. “The dual display of prices is merely intended to serve as an information tool to enable consumers to familiarize themselves with the future currency,” the CBM said.
The Bank also pointed out that all Maltese lira holdings, whether held as cash or other financial assets will, upon euro adoption and for a period beyond that date, be converted into euro at the established irrevocable exchange rate without bank charges. Furthermore, Maltese liri notes will remain exchangeable into euro for a period of 10 years, while the Maltese lira and cent coins will remain exchangeable into euro for a period of two years after the adoption of the euro.
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