Note: This currency has been replaced by the Euro.
Overview
The Maltese Lira was the currency of Malta from 1972 until December 31, 2007. The Lira was abbreviated to Lm, although the traditional ₤ sign was often used locally. In English, the Maltese currency was sometimes referred to as the Pound.
Economy
Because Malta has few raw materials and a very small domestic market, it has based its economic development on the promotion of tourism, which accounts for approximately 30% of GDP, and export of manufactured goods, mainly semiconductors, which accounts for about 75% of exports.
Tourist visits and foreign exchange earnings derived from tourism have steadily increased since the late 1970s. Following the September 11 attacks, the tourist industry suffered setbacks here as everywhere else.
The recent low economic growth, coupled with the private sector preference for corporate bonds , has contributed to a weak demand for bank loans. The banking system remains highly concentrated, with two of the four local banks accounting for about 90% of all loans and deposits.
The Maltese government has pursued a policy of gradual economic liberalization, taking some steps to shift the emphasis in trade and financial policies from reliance on direct government intervention and control to policies that allow a greater role for market mechanisms.
History
Before 1972, the Pound was in circulation, consisting of British coins and banknotes supplemented by Maltese notes.
Although using British coins, Malta did not decimalize with the United Kingdom in 1971.
Beginning in 1973, the name Lira was used on banknotes along with with the Pound.
Since 1986, only the Lira was used on both coins and banknotes.
When it joined the European Union (EU), Malta agreed to adopt the Euro. The Lira was replaced by the Euro on January 1, 2008.
