Montecaran libra: Difference between revisions
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== History == | == History == | ||
The libra is ultimately derived from the {{wp|troy pound}} of silver that formed the basis of the monetary system in the [[ | The libra is ultimately derived from the {{wp|troy pound}} of silver that formed the basis of the monetary system in the [[Solarian Republic]]; the name “libra” is in fact the Solarian word for “pound.” From classical times to 1870, the libra was on the {{wp|silver standard}}; between then and 1951, it was on a {{wp|bimetallism|bimetallic}} gold and silver standard, where the price of gold was periodically readjusted to the price of silver. The convertibility of the libra to gold ended in 1982; the [[Bànca de Montecara]] chose to adopt a fixed exchange rate to the euclo upon its debut in 1995. | ||
Until 1982, the libra was subdivided into 12 ''onçià'', | Until 1982, the libra was subdivided into 12 ''onçià'' and each ''ònçia'' was in turn divided into 30 ''scrupi''. Thus, the libra was equal to 360 ''scrupi''. After decimalization, the libra was divided into 100 ''çentimà'' instead, though the unit exists for electronic transfers only and has never been produced in physical money. | ||
== Exchange rate == | == Exchange rate == | ||
Revision as of 18:34, 27 April 2020
| lìbra Montecarà (Montecaran) | |
|---|---|
 A currently issued 50-libra note | |
| ISO 4217 | |
| Unit | |
| Plural | librà |
| Symbol | Ł |
| Denominations | |
| Subunit | |
| 1/12 1/100 | ònçia (historic) çèntima (electronic only) |
| Plural | |
| ònçia (historic) çèntima (electronic only) | onçià çentimà |
| Symbol | |
| ònçia (historic) çèntima (electronic only) | ø none |
| Banknotes | |
| Freq. used | Ł20, Ł50, Ł100, Ł200 |
| Rarely used | Ł500 |
| Coins | |
| Freq. used | Ł1, Ł2, Ł5, Ł10 |
| Demographics | |
| User(s) |  Montecara |
| Issuance | |
| Central bank | Bànca de Montecara |
| Website | banca.go.mc |
| Valuation | |
| Inflation | 1.80% |
| Source | Secretariat of Finance (Q4 2019) |
| Pegged with | Euclo (EUC) |
| Value | 1 EUC = 5.10 MCL |
The Montecaran libra is the official currency of Montecara, issued by the Bànca de Montecara. It is pegged to the value of the euclo at the rate of 1 EUC to 5.10 MCL.
History
The libra is ultimately derived from the troy pound of silver that formed the basis of the monetary system in the Solarian Republic; the name “libra” is in fact the Solarian word for “pound.” From classical times to 1870, the libra was on the silver standard; between then and 1951, it was on a bimetallic gold and silver standard, where the price of gold was periodically readjusted to the price of silver. The convertibility of the libra to gold ended in 1982; the Bànca de Montecara chose to adopt a fixed exchange rate to the euclo upon its debut in 1995.
Until 1982, the libra was subdivided into 12 onçià and each ònçia was in turn divided into 30 scrupi. Thus, the libra was equal to 360 scrupi. After decimalization, the libra was divided into 100 çentimà instead, though the unit exists for electronic transfers only and has never been produced in physical money.
Exchange rate
The Bànca de Montecara, Montecara's central bank, sets the rate of exchange between the libra and the euclo. It was last changed on 1 July 2002, when it was lowered from 1 EUC = 5.25 MCL to the current 5.10 MCL.
The Bànca has described a number of advantages that Montecara obtains from having a fixed exchange rate to the euclo, including:
- Fiscal predictability thanks to a libra that is tied to a stable reserve currency
- The ability of the state to buy commodities on the international market at competitive prices
- Stable terms of trade with Montecara's most important trading partner
Economists have conversely noted that, because Montecara does not impose capital controls because of its important financial sector, the fixed exchange rate leaves it with little to no control over its monetary policy. Because of the fixed exchange rate, the Bànca must hold the equivalent value in euclo to all libra in circulation. This means that Montecara is an aggressive purchaser of Euclean government debt, and that Euclean bonds form the bulk of the Bànca's foreign reserve portfolio.
Coins
| Image | Value | Description | |
|---|---|---|---|
| Obverse | Reverse | ||
 |
Ł1 | Denomination, bank mark, and year | Heraldic arms of Saint Stephen |
 |
Ł2 | Denomination, bank mark, and year | Wreath of coral and trident |
 |
Ł5 | Denomination, bank mark, and year | Scallop shell and waves |
 |
Ł10 | Denomination, bank mark, and year | Coat of arms of Montecara |
Banknotes
| Image | Value | Dimensions (mm) | |
|---|---|---|---|
| Ł20 | 116 × 72 | ||
|
|
|
Ł50 | 135 × 82 |
| Ł100 | 165 × 106 | ||
| Ł200 | 181 × 115 | ||
| Ł500 | 200 × 125 | ||