This infobox shows the latest status before this currency was rendered obsolete.
The lira (/ˈlɪərə/;[lower-alpha 1] plural lire[lower-alpha 2][1]) was the currency of Italy between 1861 and 2002. It was first introduced by the Napoleonic Kingdom of Italy in 1807 at par with the French franc, and was subsequently adopted by the different states that would eventually form the Kingdom of Italy in 1861. It was subdivided into 100 centesimi (singular: centesimo), which means "hundredths" or "cents". The lira was also the currency of the Albanian Kingdom from 1941 to 1943.
The term originates from libra, the largest unit of the Carolingian monetary system used in Western Europe and elsewhere from the 8th to the 20th century.[2] The Carolingian system is the origin of the French livre tournois (predecessor of the franc), the Italian lira, and the pound unit of sterling and related currencies.
In 1999 the euro became Italy's unit of account and the lira became a national subunit of the euro at a rate of €1 = Lit.1,936.27, before being replaced as cash in 2002.
The Carolingian monetary system divided the libra into 20 solidi (singular: solidus) or 240 denarii (singular: denarius). These units translate in Italian to lira, soldo and denaro; in French to livre, sou and denier; and in English to pound, shilling and penny.
In France, the "franc" referred to a coin worth one livre tournois. This term was also adopted in various Gallo-Italic languages in north-western Italy to refer to the Italian lira.[3]
Notation and symbols
There was no standard sign or abbreviation for the Italian lira. The abbreviations Lit. (standing for Lira italiana) and L. (standing for Lira) and the sign ₤ or £ were all accepted representations of the currency. Banks and financial institutions, including the Bank of Italy,[4] often used Lit.[5][6] and this was regarded internationally as the abbreviation for the Italian lira.[7] Handwritten documents and signs at market stalls would often use "£" or "₤"[8][9] while coins used "L."[10][11]Italian postage stamps mostly used the word Lire in full but some (such as the 1975 monuments series) used "L."
The name of the currency could also be written in full as a prefix or a suffix (e.g. Lire100,000 or 100,000Lire).
The Napoleonic Kingdom of Italy first introduced the Italian lira in 1807 at par with the French franc, worth 4.5 grams of fine silver or 0.29032 gram of fine gold (gold-silver ratio 15.5). Despite the kingdom's demise in 1814, this new lira would eventually replace the currencies of the different Italian states until their unification in 1861, replacing, among others:
World War I broke the Latin Monetary Union and resulted in prices rising severalfold in Italy. Inflation was curbed somewhat by Mussolini, who, on 18 August 1926, announced a new exchange rate between the lira and sterling of £1stg. = Lit.90 (the so-called Quota 90) although the free exchange rate had been closer to Lit.140–Lit.150 to the pound, causing a temporary deflation and widespread problems in the real economy. In 1927, the lira was pegged to the U.S. dollar at a rate of US$1 = Lit.19. This rate lasted until 1934, with a separate "tourist" rate of $1 = Lit.24.89 being established in 1936. In 1939, the "official" rate was Lit.19.8.
After the Allied invasion of Italy, an exchange rate was set at $1 = Lit.120 (£1 = Lit.480) in June 1943, reduced to Lit.100 the following month. In German-occupied areas, the exchange rate was set at 1ℛℳ = Lit.10. After the war, the value of the lira fluctuated, before Italy set a peg of US$1 = Lit.575 within the Bretton Woods System in November 1947. Following the devaluation of the pound, Italy devalued to $1 = Lit.625 on 21 September 1949. This rate was maintained until the end of the Bretton Woods System in the early 1970s. Several episodes of high inflation followed until the introduction of the euro.
Lira pesante
Due to the lira's low value after the war economic calculations and price displays became unwieldy because of the large number of zeroes. As early as the 1950s suggestions were made to redenominate the lira but no serious efforts were made at that time. In the 1970s a plan known as lira pesante[it] (English: hard lira) or lira nuova (new lira) was proposed. The lira pesante would have redenominated the currency at 1,000:1, removing 3 zeroes. However the project went dormant for several years before being revived in 1984. Ongoing heavy inflation saw the lira pesante pushed back until it was permanently abandoned in 1991 because of plans for a single European currency.
Introduction of the euro
The lira was the official unit of currency in Italy until 1 January 1999, when it was replaced by the euro (the lira was officially a national subunit of the euro until the rollout of euro coins and notes in 2002). Old lira denominated currency ceased to be legal tender on 28 February 2002. The conversion rate was Lit.1,936.27 to the euro.[13]
All lira banknotes in use immediately before the introduction of the euro, and all post-World War II coins, were exchanged by the Bank of Italy up to 6 December 2011. Originally, Italy's central bank pledged to redeem Italian coins and banknotes until 29 February 2012, but this was brought forward to 6 December 2011.
The Napoleonic Kingdom of Italy issued coins between 1807 and 1813 in denominations of 1 and 3 centesimi and 1 soldo (5 centesimi) in copper, c.10 in 20% silver alloy, s.5, s.10 and s.15 (or c.25, c.50 and c.75 centesimi), 1Lira, 2Lire and 5Lire in 90% silver and 20Lire and 40Lire in 90% gold. All except the c.10 bore a portrait of Napoleon I, with the denominations below 1Lira also showing a radiate crown and the higher denominations, a shield representing the various constituent territories of the Kingdom.
In 1861, coins were minted in Florence, Milan, Naples and Turin in denominations of c.1, c.2, c.5, c.10 and c.50, 1Lira, 2, 5, 10 and 20Lire, with the lowest four in copper, the highest two in gold and the remainder in silver. In 1863, silver coins below 5Lire were debased from 90% to 83.5% and silver c.20 coins were introduced. Minting switched to Rome in the 1870s.
Apart from the introduction in 1894 of cupro-nickel (later nickel) c.20 coins and of nickel c.25 pieces in 1902, the coinage remained essentially unaltered until the First World War.
In 1919, with the purchasing power of the lira reduced to one fifth of that of 1914, the production of all earlier coin types except for the nickel c.20 halted, and smaller, copper c.5 and c.10 and nickel c.50 coins were introduced, followed by nickel 1Lira and 2Lire pieces in 1922 and 1923, respectively. In 1926, silver 5 and 10Lire coins were introduced, equal in size and composition to the earlier 1Lira and 2Lire coins. Silver 20Lire coins were added in 1927.
In 1936, the last substantial issue of silver coins was made, whilst, in 1939, moves to reduce the cost of the coinage led to copper being replaced by aluminium bronze and nickel by stainless steel. All production of coinage halted in 1943.
In 1943 the AM-lira was issued, in circulation in Italy after the landing in Sicily on the night between 9 and 10 July 1943. After 1946, the AM-lira ceased to be the currency of employment and was used along with normal notes, until 3 June 1950.
In 1946 coin production was resumed, although only in 1948, with the purchasing power of the lira reduced to 2% of that of 1939, did numbers minted exceed 1 million. To begin with, four denominations were issued in aluminium, 1Lira, 2 , 5 and 10Lire: these coins were in circulation together with the AM-lire and some of the old, devalued coins of the Italian Kingdom. In 1951, the government decided to replace all the circulating coins and notes with new smaller-sized aluminium 1Lira, 2 , 5 and 10Lire (although the 2Lire coin was not minted in 1951 or 1952) and in 1954–1955, Acmonital (stainless-steel) 50 and 100Lire coins were introduced, followed by aluminium-bronze 20Lire in 1957 and silver 500 lire in 1958. Increases in the silver bullion price led to the 500 lire coins being produced only in small numbers for collectors after 1967. The 500Lire (and later the 1,000Lire) also appeared in a number of commemorative coin issues, such as the centennial of Italian unification in 1961. Between 1967 and 1982, two types of "paper money" were issued with a value of Lire500. These were not issued by "Banca d'Italia", but directly by the government bearing the title "Repubblica Italiana".
100Lire FAO commemorative coin, 1979200Lire Maria Montessori commemorative coin, 1980
In 1977, aluminium-bronze 200Lire coins were introduced, followed in 1982 by the bimetallic 500Lire. This was the first bi-metallic coin to be produced for circulation, minted using a system patented by IPZS. It was also the first to feature the value in braille.[14]
Production of 1Lira and 2Lire coins for circulation ceased in 1959; their mintage was restarted from 1982 to 2001 for collectors' coin sets. Production of the 5Lire coin was greatly reduced in the late 1970s and ceased for circulation in 1998. Similarly, in 1991 the production of 10 and 20Lire coins was limited. The sizes of the 50 and 100Lire coins were reduced in 1990, but then they were completely redesigned 1993. A bimetallic 1,000Lire coin was introduced in 1997 and stopped in 1998 due to the impending introduction of the euro.
Coins still being minted for circulation at the time of the changeover to euro (in 2000 and 2001 only lire for collectors coins sets were minted) were:[15]
1Lira (0.05 cents, only for collectors)
2Lire (0.10 cents, only for collectors)
5Lire (0.26 cents, only for collectors)
10Lire (0.52 cents, only for collectors)
20Lire (1.03 cents, only for collectors)
50Lire (2.58 cents)
100Lire (5.16 cents)
200Lire (10.33 cents)
500Lire (25.82 cents)
1,000Lire (51.65 cents)
Banknotes
In 1882, the government began issuing low-denomination paper money bearing the title "Biglietto di Stato" (meaning "Ticket of the state"). To begin with, there were 5Lire and 10Lire notes, to which 25Lire notes were occasionally added from 1895. The government also issued notes titled "Buono di Cassa" between 1893 and 1922 in denominations of 1Lira and 2Lire. Production of Biglietti di Stato ceased in 1925 but resumed in 1935 with notes for 1Lira, 2, 5 and 10Lire being introduced by 1939.
The Bank of Italy began producing paper money in 1896. To begin with, 50, 100, 500 and 1,000Lire notes were issued. In 1918–1919, 25Lire notes were also issued but no other denominations were introduced until after the Second World War.
In 1943, the invading Allies introduced notes in denominations of 1Lira, 2, 5, 10, 50, 100, 500 and 1,000Lire. These were followed in 1944 by a series of Biglietti di Stato for 1Lira, 2, 5 and 10Lire, which circulated until replaced by coins in the late 1940s. The Bank of Italy introduced 5,000 and 10,000Lire notes in 1947 and 1948, respectively.
In 1951, the government again issued notes, this time simply bearing the title "Repubblica Italiana". Denominations were of 50 and 100Lire (replacing the Bank of Italy notes) and they circulated until coins of these denominations were introduced in the mid-1950s. In 1966, 500Lire notes were introduced (again replacing Bank of Italy notes) which were produced until replaced in 1982 by a coin.
50,000 and 100,000Lire notes were introduced by the Bank of Italy in 1967, followed by 2,000Lire notes in 1973, 20,000Lire notes in 1975 and 500,000Lire notes in 1997.
In the mid-1970s, when coinage was in short supply, Italian banks issued "miniassegni" in several low denominations. Technically bearer cheques, they were printed in the form of banknotes and were generally accepted as substitute legal currency.
Notes in circulation when the euro was introduced were:
10,000Lire – obverse and reverse – printed in 1948
Banknotes circulating in 1971
500Lire – obverse and reverse – printed in 1966
1,000Lire – obverse and reverse – printed in 1969
5,000Lire – obverse and reverse – 1971 (1964)
10,000Lire – obverse and reverse – printed in 1962
50,000Lire – obverse and reverse – printed in 1967
100,000Lire – obverse and reverse – printed in 1967
Banknotes circulating in 1982
500Lire – obverse and reverse – printed in 1974
1,000Lire – obverse and reverse – printed in 1982
2,000Lire – obverse and reverse – printed in 1973
5,000Lire – obverse and reverse – printed in 1979
10,000Lire – obverse and reverse – printed in 1976
20,000Lire – obverse and reverse – printed in 1975
50,000Lire – obverse and reverse – printed in 1977
100,000Lire – obverse and reverse – printed in 1978
Banknotes circulating in 2000
1,000Lire – obverse and reverse – printed in 1990
2,000Lire – obverse and reverse – printed in 1990
5,000Lire – obverse and reverse – printed in 1985
10,000Lire – obverse and reverse – printed in 1984
50,000Lire – obverse and reverse – 1992 (1984)
100,000Lire – obverse and reverse – 1994 (1983)
500,000Lire – obverse and reverse – printed in 1997
Currencies formerly related to the Italian lira
Vatican City
The Vatican lira (plural lire) was the official unit of the Vatican City State. It was at par with the Italian lira under the terms on the concordat with Italy. Italian lira notes and coins were legal tender in the Vatican City, and vice versa. Specific Vatican coins were minted in Rome, and were legal tender also in Italy and San Marino.
The Vatican City switched to the euro along with Italy and San Marino. As with old Vatican lira coins, the Vatican City has its own set of euro coins.
San Marino
The Sammarinese lira (plural lire) was the official unit of San Marino. Like the Vatican lira, the Sammarinese lira was at par with the Italian lira.
Italian lira notes and coins were legal tender in San Marino (and vice versa). Specific Sammarinese coins were minted in Rome, and were legal tender in Italy, as well as the Vatican City.
San Marino switched to the euro along with Italy and the Vatican City. As with old Sammarinese lira coins, the country has its own set of euro coins.
Miniassegni
Miniassegni (singular: miniassegno) were a type of notgeld that circulated in Italy in the late 1970s in place of change, as in that period small-denomination coins were scarce and were often substituted with candy, stamps, telephone tokens, or even public transport tickets. The first miniassegni appeared in December 1975, and they were subsequently issued by many banks; they had nominal values of 50, 100, 150, 200, 250, 300 and 350Lire.
The drachma was the currency used in Greece during several periods in its history:
An ancient Greek currency unit issued by many Greek city states during a period of ten centuries, from the Archaic period throughout the Classical period, the Hellenistic period up to the Roman period under Greek Imperial Coinage.
Three modern Greek currencies, the first introduced in 1832 by the Greek King Otto (Όθων) and the last replaced by the euro in 2001. The euro did not begin circulating until 2001 but the exchange rate was fixed on 19 June 2000, with legal introduction of the euro taking place in January 2002.
The Deutsche Mark, abbreviated "DM" or "D-Mark", was the official currency of West Germany from 1948 until 1990 and later the unified Germany from 1990 until the adoption of the euro in 2002. In English, it was typically called the "Deutschmark". One Deutsche Mark was divided into 100 pfennigs.
The peseta was the currency of Spain between 1868 and 2002. Along with the French franc, it was also a de facto currency used in Andorra.
The lek is the currency of Albania. Historically, it was subdivided into 100 qintars.
The ouguiya, at one time spelled "ougiya", is the currency of Mauritania. Each ouguiya constitutes five khoums. As such it is one of two circulating currencies, along with the Malagasy ariary, whose division units are not based on a power of ten.
The lira or pound was the currency of Malta from 1972 until 31 December 2007. One lira was divided into 100 cents, each of 10 mils. After 1986 the lira was abbreviated as Lm, although the original £M sign continued to be used unofficially. In English the currency was still frequently called the pound even after its official English language name was changed to lira.
The Romanian leu is the currency of Romania. It is subdivided into 100 bani, a word that means "money" in Romanian.
The birr is the unit of currency in Ethiopia. It is subdivided into 100 santim.
The Somaliland shilling is the official currency of the Republic of Somaliland.
The kyat is the currency of Myanmar (Burma). The typical notation for the kyat is "K" (singular) and "Ks." (plural), placed before the numerals followed by /-.
The koruna, or crown, has been the currency of the Czech Republic since 1993. The koruna is one of the European Union's 8 currencies, and the Czech Republic is legally bound to adopt the euro currency in the future.
The Belgian franc was the currency of the Kingdom of Belgium from 1832 until 2002 when the Euro was introduced. It was subdivided into 100 subunits, each known as a centiem in Dutch, centime in French or a Centime in German.
The shilling is the currency of Kenya. It is divided into 100 cents.
The East African shilling was the sterling unit of account in British controlled areas of East Africa from 1921 until 1969. It was issued by the East African Currency Board. It is also the proposed name for a common currency that the East African Community plans to introduce.
The dobra is the currency of São Tomé and Príncipe. It is abbreviated Db and is divided into 100 cêntimos. The first dobra (STD) was introduced in 1977, replacing the escudo at par. Due to past inflation, on 1 January 2018 the dobra was redenominated at a rate of 1000 to 1, and given the new ISO 4217 currency code STN.
The lira was the currency of the Vatican City between 1929 and 2002. It was not a separate currency but an issue of the Italian lira; the Banca d'Italia produced coins specifically for Vatican City.
The lira was the currency of San Marino from the 1860s until it was replaced by the euro on 1 January 2002. It was equivalent and pegged to the Italian lira. Italian coins and banknotes and Vatican City coins were legal tender in San Marino, while Sammarinese coins, minted in Rome, were legal tender throughout Italy, as well as in the Vatican City.
The lira was the currency of the Papal States between 1866 and 1870.
The Italian Somaliland lira also called the Somali lira, was a special version of the Italian lira minted in Italian Somaliland between 1925 and 1926.
Italy has a long history of different coinage types, which spans thousands of years. Italy has been influential at a coinage point of view: the florin, one of the most used coinage types in European history, was struck in Florence in the 13th century. Since Italy has been for centuries divided into many city-states, they all had different coinage systems, but when the country became unified in 1861, the Italian lira came into place, and was used until 2002. Today, Italy uses the euro.
References
↑ "lira". The Chambers Dictionary (9thed.). Chambers. 2003. ISBN0-550-10105-5.
↑ The last country to abandon the Carolingian system was Nigeria in 1973, when the pound was replaced by the naira.
↑ Kelly, Patrick (1821). "Venice". The Universal Cambist, and Commercial Instructor: Being a Full and Accurate Treatise on the Exchanges, Monies, Weights and Measures of All Trading Nations and Their Colonies; with an Account of Their Banks, Public Funds, and Paper Currencies, Volume 1. London: Lackington Allen and Co. p.344. See also Milan p 254; Parma p 275
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Vatican City (local issue: Vatican lira)
