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Interview with C.J. Farrugia, Executive Director and Head of Corporate Investment and Markets, HSBC Bank Malta p.l.c.
How long will it be possible to convert the Maltese Lira notes and coins into euro after Malta adopts the euro on 1st January 2008?
It will be possible to convert Maltese lira notes and coins into euro from the euro adoption date free of charge at all local banks. There will be one month of dual circulation following the introduction of the new currency, when both the Lm and the euro will be in circulation. During this time cash payments can still be carried out in Lm, but the change will need to be given in euro.
Once the dual circulation period is over, the Lm will no longer be legal tender and cannot be used for retail transactions. Nonetheless, HSBC Bank Malta together with the other commercial banks will continue to exchange Lm into euro free of charge for up to three months following the changeover. Maltese lira notes and coins will continue to be exchangeable for euro notes and coins free of charge at the Central Bank of Malta after euro adoption for ten years and for two years, respectively.
What are the denominations of euro notes and coins? Do they have any security features?
The euro banknote series comprises seven different values (denominations): €5, €10, €20, €50, €100, €200 and €500.
The euro coin series comprises eight different values (denominations): 1, 2, 5, 10, 20 and 50 cent, €1 and €2. The euro coins have common side and a national side. The national side indicates the issuing country.
All euro notes and coins are legal tender throughout the euro area.
Banknote Features include:
Different sizes: the higher the value, the bigger the banknote.
Striking colours: neighbouring denominations have clearly contrasting colours. The €5 banknote is grey and the €10 is red. The €20 is blue, followed by an orange €50 and a green €100 banknote. The €200 banknote is yellow-brown, the €500 banknote is purple.
The values are printed in large numerals.
The banknotes are printed in relief, using a special printing method known as ‘intaglio’. The €200 and €500 banknotes also bear tactile marks printed in intaglio and positioned along their edges.
Coin features include:
Different coin shapes, colours and edges: mills, scallops, grooves and indents make it easier to differentiate the values.
The weight of each coin is different – the heavier the coin, the higher the value (except for the €1 coin).
The thickness of each coin varies according to value – the thicker the coin, the higher the value (except for the €1 and €2 coins).
The values are prominently displayed on the common European face of the coins.
How is HSBC Bank Malta p.l.c. involved in this process?
As one of Malta’s leading financial services organisations, HSBC Bank Malta is preparing for the euro adoption and cooperating with the authorities and other financial institutions to ensure the changeover is as smooth as possible.
All aspects of the euro conversion process are being assessed and where required the necessary action taken. This is being done under the guidance of a specifically set up Euro Changeover Committee and a number of distinct working groups. The whole project is being coordinated by a project manager.
HSBC Bank Malta is committed to ensure that all changes related to this project are done in the best interest of its clients. The Bank is also highly committed in establishing and deepening existing relationships with key private and public sector names in Malta. (concluded) |
