The currency of Italy is the Euro. The Italian euro is abbreviated to € and its international code is EUR. It exists in denominations of € 5, € 10, € 20, € 50, € 100, € 200 and € 500. Italian banknotes are printed by the Bank of Italy which also acts as a regulator. On the other hand, the coins are minted by State Printing Works in support of the Ministry of Finance and Economy. Other places where the euro is used include Slovenia, Greece, Austria, Estonia, Luxembourg, Finland, Belgium, Spain, Cyprus, Portugal, Slovakia, Malta, Lithuania, Germany, France, Ireland, Latvia and the Netherlands.
History of the Italian Euro
Italy used the “lira” as its currency before adopting the euro in 1999. The lira was replaced by euro at the rate of 1, while the 936.27 lira is equivalent to 1 euro. It took the Bank of Italy two years to exchange all the lira banknotes and coins for the euro. The euro currency was developed with the main objective of creating a monetary and economic union for all states of the European Union, with the exception of Denmark and the United Kingdom. The minting of the new banknotes and coins began in 1998 and lasted for a period of four years. In 2002 physical banknotes and coins started circulating in the economy.
Coins of the Italian Lira
The Italian coins were introduced in the year 1861. They were in the denominations of 1, 2, 5, 10, 20, 50, 100, 200, 500 and 1000 lire. The coins were struck in silver, nickel, stainless steel, aluminum, gold, aluminum-bronze, copper-nickel and bi-metal. However, the Italian lira no longer circulated in the country’s economy after the adoption of the euro. Italian euro coins are uniquely designed. They have the twelve stars of the European Union, the protruding letters representing the Italian Republic, the year of design and the letter R which stands for Rome.
Italian banknotes
Italian euro banknotes were introduced in 1999 in denominations of 5, 10, 20, 50, 100, 200 and 500 euros. The Bank of Italy started issuing banknotes in 2002 according to the rules and regulations that control the Euro system. As a member of the Eurozone, the Bank of Italy produces the number of notes received, circulates them, removes the notes that have run out and participates in the search for new security features. It therefore contributes to the definition of regular standards in order to guarantee the circulation of banknotes and to combat counterfeiting. In addition, the Bank of Italy also exercises the power of control over those who manage the cash. In cases where the rules are violated, it may decide to take restrictive measures and impose administrative fines.
The euro currency is stronger than the US dollar. However, this may change from time to time due to changes in the Forex market. As of June 27, 2017, the euro to dollar exchange rate is 1 euro to 1.13 US dollars.
