Economics

What is the Currency of Italy?

The official currency of Italy is the euro.

The currency of Italy is Euro. The Italian Euro is abbreviated as € and its international code is EUR. It exists in denominations of €5, €10, €20, €50, €100, €200 and €500. The Italian currency notes are printed by the Bank of Italy which also acts as the regulator. On the other hand, the coins are minted by State Printing Works in support of the Ministry of Finance and Economy. Other places where the Euro is used include Slovenia, Greece, Austria, Estonia, Luxembourg, Finland, Belgium, Spain, Cyprus, Portugal, Slovakia, Malta, Lithuania, Germany, France, Ireland, Latvia, and Netherlands.

History Of The Italian Euro

Italy used the “lira” as its currency before adopting the euro in 1999. The lira was replaced by euro at a rate of 1, 936.27 lira being equivalent to 1 euro. It took the Bank of Italy two years to exchange all lira notes and coins to the Euro. The Euro currency was developed with the main objective of creating a monetary and economic union for all the European Union states apart from Denmark and the United Kingdom. The minting of the new notes and coins kicked-off in 1998 and lasted for a period of four years. In 2002 the physical banknotes and coins started circulating in the economy.

The Italian Lira Coins

The Italian coins were introduced in the year 1861. They were in the denominations of 1, 2, 5, 10, 20, 50, 100, 200, 500 and 1000 liras. The coins were struck in silver, nickel, stainless steel, aluminum, gold, aluminum-bronze, copper-nickel and bi-metallic. However, the Italian lira was no longer circulated in the country’s economy after the adoption of the euro currency. The Italian euro coins are uniquely designed. They have the twelve stars of the European Union, the protruding letters which stand for the Italian Republic, the year of design and letter R which stands for Rome.

The Italian Banknotes

Italian euro notes were introduced in 1999 in denominations of 5, 10, 20, 50, 100, 200 and 500 euros. The Bank of Italy started issuing the banknotes in 2002 according to the rules and regulations that control the Euro system. As a member of the Eurozone, the Bank of Italy produces the number of notes given to it, circulates them, removes the worn-out notes, and participates in the search for new security features. It then contributes towards the definition of regular standards for purposes of ensuring the quality of notes circulated and to fight against counterfeiting. Furthermore, the Bank of Italy also employs power of control over those who handle cash. In instances where the rules are violated, it may decide to embrace restrictive measures and levy pecuniary administrative sanctions.

The euro currency is stronger compared to the US dollar. However, this may change from time to time due to the changes in the Forex market. As at June 27, 2017, the exchange rate of the euro to dollar is 1 euro for 1.13 US dollars.

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