Following long but intense months of planning and practical preparations, the first Maltese euro coins have now eventually found their way into the hands of the general public. Starter kits were made available for both retailers and consumers alike and with them came a significant development in the euro adoption process; what was previously a “concept” has become a tangible reality.

It is very interesting to note that realisation and acceptance of the imminent changeover seems to have dawned following the issuing of the starter kits and a number of questions pertaining to the practical realities of a currency change have resurfaced with vigour. One of the most common questions, and perhaps one that may be causing a certain degree of consternation, is the issue of dual circulation.

Dual circulation made easy

Although it has been stated that dual circulation is “the period of one month, from the 1 January until the 31 January, where one can pay in Maltese Lira (cash) and be given change in euro”, it is nevertheless important to highlight what this translates to on a practical level. Dual circulation in no way imposes an obligation to pay in Maltese lira – on the contrary it is highly recommended that consumers pay in euro so as to avoid any unnecessary complications. However, retailers are obliged to accept payment in Maltese Lira during the specified period of time and must at all times, give change in euro.

The main aim of dual circulation is to facilitate the withdrawal of Maltese lira coins and notes. Admittedly, for the vast majority of the Maltese population it a very convenient way of “getting rid” of coinage without having to go to the bank. Dual circulation does imply that retailers will have to undertake additional training and preparatory measures so as to be able to meet the ensuing demands.

Fortunately, there are a number of tips that may be put to good use by all parties involved. Starting from the consumer perspective, one should most definitely consider avoiding paying in Maltese lira by exchanging any remaining notes and coins at their commercial bank. This should not prove to a difficult solution as starter kits have been made available to ensure that everybody’s pockets are lined with euro coins prior to the 1 January. In addition to this, banks have been doing their utmost to facilitate the euro’s entry into circulation by striving to ensure that all ATM machines are up and running within hours of the changeover.

Furthermore, it is being recommended that people should try to pay with the exact money for the first few days following euro adoption. This provides numerous benefits, including the elimination of queues, an easy and uncomplicated service and the chance for each individual to get used to using the new notes and coins with confidence and ease without having to “worry” about figuring out how much change is due.

On the other hand, while retailers are indeed obliged to accept cash payment in Maltese lira during this one month period, nothing is stopping them from “encouraging” their customers to pay in euro from the start.

Nonetheless, it is inevitable that some clients will pay with the old currency, but some creativity and practicality will go a long way in such cases. One could consider first exchanging Maltese lira to euro and then allowing their clients to pay in euro depending on the amount spent.

Where possible, this service could be offered by setting up a customer care point which allows such transactions to take place, before the client moves on to the point of sale. Alternatively, an additional cash till or small safe could be kept near at hand whereby the retailer can carry out such a service before the client tenders the required amount.

Should neither of these options be available, the easiest way to arrive at the change due in euro is to convert the amount tendered in Maltese lira to euro and then working the change out from there. This can be achieved by using the required euro notes and coins to count out the difference in the amounts and automatically count out the change to be given – of course, if any! In any case, one would do well to invest in a euro converter and a few practical training sessions beforehand.

As the saying goes, time waits for no man, and the vast majority of the Maltese population can probably relate to this statement very well. It is the opportune moment to analyse what options are open for the dual circulation period. Retailers should make sure they have adequate amounts of euro cash in their tills – four to five times the normal amount should be more than enough.

Consumers need to empathise with their retailers and strive to facilitate the dual circulation period for all and sundry. Above all, one should keep in mind that shops are not to be used as an “exchange bureau” and the process will no doubt be short and smooth with adequate planning and consideration on the part of all parties involved.

For more information phone Linja Ewro 154 or visit www.euro.gov.mt .

Claire Azzopardi is Information Officer National Euro Changeover Committee