The Central Bank of Malta has said that the entry of the Maltese lira into ERM II has not changed the status of the lira, which remains the only legal tender currency in Malta. Since the euro will, therefore, continue to be treated as a foreign currency like any other, the exchange rate at which the banks and financial institutions buy euro from, and sell euro to, their customers will not be the same as the central parity rate of 1 euro = Lm0.429300 established upon entry into ERM II.

This is because, in line with existing international practice, the exchange rates quoted by banks and financial institutions include a margin to cover their transaction costs.

The public is also reminded that in accordance with Legal Notice 283 of 2002 (Section 5(10)) issued under the Consumer Affairs Act, the prices of goods and services offered for sale in Malta must be priced in Maltese liri. Prices shown in any other currency are only indicative. It should, therefore, be made clear that under no circumstance should: (i) the price in any other currency be displayed with more prominence than the price in Maltese liri and (ii) the price in any other currency be displayed as the only price on any object being offered for sale.

The above practice will continue to apply until such time as the euro is adopted as the official currency of Malta.

Dual pricing forms part of the overall euro adoption strategy and a period of officially-sanctioned dual pricing will be introduced closer to the time of the adoption of the euro.