Montecaran libra

Montecaran libra

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 Latin Republic. The name “libra” is in fact the Latin 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, though coins were last made in that denomination only in 1960. After decimalization, the libra was divided into 100 çentimà instead, though the unit exists for electronic transfers only and has never been produced in coin or bill form.

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

Pre-decimal system

Before decimalization in 1982, the lìbra was divided into 12 onçià. Each ònçia was in turn divided into 8 dramà, and each dràma was divided into 3 scrupi. Thus, the table of conversions was:

lìbra	ònçia	dràma	scrupo
1 lìbra	12 onçià	96 dramà	288 scrupi
	1 ònçia	8 dramà	24 scrupi
		1 dràma	3 scrupi