From the 1860s to 2002, the official currency used in San Marino was the lira, thereafter it was replaced by the euro. The currency code for the Euro used by San Marino is EUR while its symbol is €; the code for the country's previous currency, the Sammarinese lira was ITL. Since the country is so close to Italy, it is heavily influenced by the Italian government such that the Sammarinese lira was equivalent and also pegged to the Italian lira. Vatican City coins together with Italian banknotes and coins were the country’s legal tender. Sammarinese coins that were minted in Rome were not only used as a legal tender in the Vatican City but also throughout Italy.
Overview Of The Currency Used In San Marino
The San Marino currency comprises of both euro coins and banknotes. In San Marino, the Euro is divided into 100 centesimos. Euro banknotes in San Marino are issued in denominations of 500, 200, 100, 50, 20, 10, and 5 Euros. On the other hand, Euro coins are issued in denominations of 50, 20, 10, 5, 2 and 1 centesimo. There are also denominations of 1 and 2 euro coins. Following the introduction of the euro, San Marino decided to discontinue the use of the lire coins. However, the country is licensed to issue its own euro coins according to their own design; San Marino periodically issues its own euro coins. At present the euro exchange rates against the dollar is 1 EUR = 1.14113 USD.
History Of The Currency Of San Marino
The country's economy is closely connected to the monetary and banking system in Italy. For the longest time, the Italian lira in this context known as the Sammarinese lira was the official legal tender. When Italy introduced the 1990 Banking Act, it featured a number of key adjustments as a part of the EU policy such as loosening restrictions on foreign capital regulations, creating conditions that aided in the reduction of the public ownership of banks, using a unified currency and free capital movement within member states of the EU. Italy together with 10 member states of the EU replaced their national currencies with the euro in 1999 as part of the European Central Bank (ECB). Initially, San Marino started using the Euro on January 1, 1999, for accounting purposes and electronic transfers only. However, the country started using the euro as its legal tender on January 1, 2002, when euro coins and bills were first issued. At the time the Italian currency in San Marino ceased to be the legal tender. One of the biggest challenges the Sammarinese government faced was adjusting to the requirements of a centralized European banking and monetary system without officially being a member of the European Union.
Benefits Of Eurorizing The San Marino CurrencyThe euro is valued among the world's highest currencies. Ideally, its exchange rate is compared to the USD since the USD is used all over the world. Using the euro as their official currency, the country has improved efficiency of their payment process; this also helps directly reduce costs since the country can work with a single set of payment especially when dealing with other members of the EU who have adopted the euro. Since the euro is a reliable and stable currency, the country also gets to enjoy such benefits especially when trading with countries that rate a bit lower against the euro. Generally, since San Marino has customs with Italy, the country gets to enjoy all the benefits that come with being a member of the EU.