Italian Lira to Euro Exchange Reopened: What You Need to Know
Fourteen years after Italy adopted the Euro, a window has unexpectedly opened for some to exchange their old Italian Lira for Euros. This development arises from a ruling by the Constitutional Tribunal, which overturned a 2011 law that had prematurely closed the currency exchange window.
Back in 2011, during a period of severe financial instability, the Italian government under Mario Monti implemented a decree known as “Salva Italia” (Save Italy). This set of austerity measures aimed to rescue the nation from a deep public finance crisis and identify savings wherever possible.
As part of these measures, the government decided to accelerate the deadline for exchanging Lira to Euro, setting it for December 6, 2011, instead of the originally planned date of February 28, 2012, as established 14 years prior.
This expedited closure of the Lira exchange process was challenged by a group of bank clients who filed a lawsuit. On November 5th of last year, the Constitutional Tribunal declared the decree unconstitutional.
Pre-Euro Italian Lira currency available for exchange to Euro in Italy
For several weeks, the Italian central bank and the Ministry of Finance deliberated on how to implement the Tribunal’s decision.
Ultimately, it was decided that from January 22nd, individuals who had been previously denied the exchange could apply to convert their Lira banknotes to Euros at authorized bank branches. However, it’s crucial to understand that this does not mean all Italians can now simply dig out their old Lira.
The right to exchange Lira is strictly limited to those who, between the premature closure date of December 6, 2011, and the originally scheduled date of late February 2012, attempted to exchange their currency and were refused. These individuals must now provide proof of their prior attempted exchange to be eligible for the Euro conversion.
It is estimated that this three-month acceleration of the exchange deadline saved the Italian state, then grappling with a significant financial crisis, between 1.2 and 1.6 billion Euros. These funds, instead of being distributed to citizens through currency exchange, were transferred by the central bank to the state budget to alleviate the record-high public debt.
The exact number of people who can now benefit from the Constitutional Tribunal’s ruling, which sided with those who held onto their Lira, remains undisclosed. It is understood that the number will not be substantial, given the requirement for claimants to prove their prior attempts to exchange currency.
According to data from the Italian central bank, approximately 300 million Lira banknotes are still circulating throughout the country.
From Rome, Sylwia Wysocka (PAP)