Montecaran libra

Montecaran libra
libra Montecarà (Montecaran)
A currently issued 50-libra note
ISO 4217
Code	MCL
Denominations
Subunit
1/12 1/100	ònçia (historic) çèntima (electronic only)
Plural	librà
ònçia (historic) çèntima (electronic only)	onçià çentimà
Symbol	Ł
ònçia (historic) çèntima (electronic only)	ø ℂ (rarely)
Banknotes
Freq. used	Ł20, Ł50, Ł100, Ł200
Rarely used	Ł500
Coins
Freq. used	Ł1, Ł2, Ł5, Ł10
Demographics
User(s)	Montecara
Issuance
Central bank	Banca de Montecara
Website	banca.go.mc
Valuation
Pegged with	Aininian louré (ANL)
Value	1 ANL = 1.60 MCL

The Montecaran libra is the official currency of Montecara, issued by the Bànca de Montecara. It is pegged to the value of the Aininian louré at the rate of 1 ANL to 1.60 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 when the Aininian louré was taken off the gold standard; the Bànca de Montecara chose to adopt a fixed exchange rate to the louré rather than issuing the libra as fiat currency with a floating exchange rate.

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 louré. It was last changed on 1 July 2002, when it was lowered from 1 ANL = 1.67 MCL to the current 1.60 MCL.

The Bànca has described a number of advantages that Montecara obtains from having a fixed exchange rate to the louré, 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 impost 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 louré to all libra in circulation. This means that Montecara is an aggressive purchaser of Aininian government debt, and that Aininian bonds form the bulk of the Bànca's foreign reserve portfolio.

Coins

Image	Value	Description
		Obverse	Reverse
	Ł1	Denomination, bank mark, and year	Emblem of Cròxa, symbolizing the six sieteri of the old city
	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	Description
Front	Back		Dimensions (mm)	Front	Back
		Ł20	116 × 72	Captain-General Càrle Xèno	Seascape with Montecaran galleys
		Ł50	135 × 82	Painter Tixàn Vecèlo and his masterpiece Neptune Offers the Wealth of the Sea to Montecara	Apollo Pursuing Daphne by Tixàn Vecèlo
		Ł100	165 × 106	Architect Arnòld di Buçhe	Pànteon Nuova
		Ł200	181 × 115	Diplomat Mària Àgrite	Arc da Liberàxon
		Ł500	200 × 125	Explorer Enrico Dulio	Palaço Pùblico