Maltese Lira MTL What It is Transition to Euro
Maltese Lira (MTL): What It is, Transition to Euro
What Was the Maltese Lira (MTL)?
The Maltese Lira (MTL) was the currency of Malta, replaced by the Euro (EUR) in 2007.
The Lira was legal tender in Malta from 1972 to Dec. 31, 2007. Abbreviated Lm and sometimes referred to with the ₤ sign, it was also known as the Maltese Pound. Banknotes of 1, 2, 5, 10, and 20 lira circulated along with 1, 2, 5, 10, 25, and 50 lira coins.
Key Takeaways
– The Maltese Lira (MTL) was Malta’s currency prior to adopting the Euro (EUR) in 2007.
– Malta has a history dating back nearly 8,000 years. Before independence in 1964, it was a British colony.
– Malta’s strategic location has helped it develop a strong economy with high per-capita income rates.
Understanding Malta
Malta is a small island nation in the Mediterranean Sea with a long history of human inhabitation for nearly 8,000 years. It has been influenced by various cultures over the years and has been a central trading hub for the region.
Malta was a British colony until 1964 and joined the European Union in 2004. The Central Bank of Malta, established in 1968, was replaced by the Malta Financial Services Authority (MFSA) in 2002. The MFSA is now the sole financial regulator.
Transition to the Euro
Malta adopted the euro as its official currency in 2007 and became part of the Eurozone on Jan. 1, 2008.
Using the euro means that Malta’s currency strength is tied to the economies of all European Union countries. However, the economy of Malta still contributes to the long-term strength of the euro. Malta has a highly developed economy with a per-capita GDP of around $30,000 USD and ranks high in wealth, innovation, and quality of life.
Today, Malta’s economy is primarily based on the services sector, accounting for about 76% of the 2019 GDP. Financial services are particularly crucial, with Malta being a major banking and insurance hub. The country’s central Mediterranean location and proximity to the Suez Canal make it an important center for maritime trade, with almost 5.2 million tonnes of seaborne freight transported in 2019.
