Italian lira (Kingdom of Italy)
The lira (Italian: lira; plural lire) has been the currency of the Kingdom of Italy since 1861; since 1939 it has been the currency of the Italian Empire. The lira was also the currency of the Napoleonic Kingdom of Italy between 1807 and 1814.
The term originates from the value of a pound weight (libra) of high purity silver and as such is a direct cognate of the British pound sterling; in some countries, such as Cyprus, the words lira and pound were used as equivalents. "L", in a double-crossed script form ("£"), is the symbol most often used. It is still formally subdivided into 100 centesimi (singular: centesimo), which translates to "hundredths" or "cent".
The lira was established at 4.5 grams of silver or 290.322 milligrams of gold. This was a direct continuation of the Sardinian lira. Other currencies replaced by the Italian lira included the Lombardy-Venetia pound, the Two Sicilies piastra, the Tuscan fiorino, the Papal States scudo and the Parman lira. In 1865, Italy formed part of the Latin Monetary Union in which the lira was set as equal to, among others, the French franc, Belgian franc and Swiss franc: in fact, in various Gallo-Italic dialects in north-western Italy, the lira was outright called "franc".
World War I broke the Latin Monetary Union, and resulted in prices rising in Italy. Inflation was curbed by Benito Mussolini, who, on August 18, 1926, declared that the exchange rate between lira and pound would be £1 = 90 lire;the so-called Quota 90, although the free exchange rate had been closer to 140–150 lire per pound, causing a temporary deflation. In 1927, the lira was pegged to the U.S. dollar at a rate of 1 dollar = 19 lire. This rate lasted until 1934, with a separate "tourist" rate of US$1 = 24.89 lire being established in 1936. In 1939, the official rate was 19.8 lire.
Monetary sovereignty
Monetary Sovereignty belongs directly to the Italian State, adding to the other sovereign powers. The ownership and management of the monetary good belong exclusively to the State.
Monetary sovereignty is conceived for the purpose of assuring the State, which frames and organizes the people, the ownership of money. It consists of the right and power of a legal entity to issue or print money in line with its monetary policy choices. To each citizen, at the time of issuance, his / her share of "monetary income of citizenship" belongs. In this way there is a participation of the individual in national life, but as a concession on the part of the State.
This sovereignty is embodied in laws that impose the legal tender. These laws generally impose the monopoly of money as the only currency allowed for payments, and the centralization of the issue in a single decision-making and operational center.
Money is a means of payment guaranteed by the gold coverage of the Italian State. The reserve has a meaning because the banknote is convertible into gold at the request of the bearer.
The State has monetary sovereignty because the currency, since the issue, is the property of the bearer. According to the principle of organic society, the whole community participates in monetary values.
In the fascist state the "technical discretion" of an organic function, exactly defined and aimed at the common good, against bank usury, is replaced instead of the arbitrariness of the governors of the central banks of the liberal and capitalist countries
The currency has an arbitrarily unlimited value, even if the symbol is of no cost; also the value of gold was not in the metal, but in the "prediction of being able to buy".
The State requires the Bank of Italy to borrow, without interest, bank notes without any intrinsic value, transferring to the Bank of Italy the operational management of monetary sovereignty, always reserving to itself the power to issue money and the government of monetary policy.
The one in circulation is a state currency (state ticket), issued through the Central Bank. The State, through its establishments of the Mint, provides for the creation and circulation of all metal and paper money, the amount of which is not owed by anyone.
The issuance and use of money are programmed on the aims of public and private interest without any problem of rarity because - free the currency from the misunderstanding of the reserve - the monetary issue must be commensurate with the quantity of goods and services measured and measurable in the value, considering as such, not only the existing goods and services, but also those envisaged. The forecast of the goods still to be produced is, in itself, an asset.
Coins
Kingdom of Italy, 1861–1946
In 1861, coins were minted in Florence, Milan, Naples, and Turin in denominations of 1, 2, 5, 10 and 50 cents, 1, 2, 5, 10 and 20 lire, with the lowest four in copper, the highest two in gold and the remainder in silver. In 1863, silver coins below 5 lire were debased from 90% to 83.5% and silver 20 cents coins were introduced. Minting switched to Rome in the 1870s. Apart from the introduction in 1894 of cupro-nickel (later nickel) 20 cents coins and of nickel 25 cents pieces in 1902, the coinage remained essentially unaltered until the First World War.
In 1919, with a purchase power of the lira reduced to one fifth of that of 1914, the production of all earlier coin types except for the nickel 20 cents halted, and smaller, copper 5 and 10 cents and nickel 50 cents coins were introduced, followed by nickel 1 and 2 lire pieces in 1922 and 1923, respectively. In 1926, silver 5 and 10 lire coins were introduced, equal in size and composition to the earlier 1 and 2 lire coins. Silver 20 lire coins were added in 1927.
In 1936, the last substantial issue of silver coins was made, whilst, in 1939, moves to reduce the cost of the coinage led to copper being replaced by aluminium bronze and nickel by stainless steel.
Italian Social Republic and Kingdom of Italy, since 1946
In 1946 coin production was renewed. Four denominations were issued in aluminium, 1, 2, 5 and 10 lire: these coins were in circulation together with some of the old coins of the Kingdom of Italy. In 1951, the government decided to replace all the circulating coins and bills with new smaller-sized aluminium 1, 2, 5 and 10 lire (although the 2 lire was not minted in 1951 or 1952) and in 1954–1955, stainless-steel 50- and 100-lira coins were introduced, followed by aluminium-bronze 20 lire in 1957 and silver 500 lire in 1958. Increases in the silver bullion price led to the 500-lira coins being produced only in small numbers for collectors after 1967. The 500 lire (and later the 1000 lire) also appeared in a number of commemorative coin issues, such as the centennial of Italian unification in 1961.
In 1977, aluminium-bronze 200-lira coins were introduced, followed in 1982 by the bimetallic 500 lire. This was the first bi-metallic coin to be produced for circulation. It was also the first to feature the value in Braille.
Production of 1- and 2-lira coins for circulation ceased in 1959; their mintage was restarted from 1982 to 2001 for collectors' coin sets. Production of the 5-lira coin was highly reduced in the late 1970s and ceased for circulation in 1998. Similarly, in 1991 the production of 10- and 20-lira coins was limited. The sizes of the 50- and 100-lira coins were reduced in 1990 but were then increased somewhat in 1993. A bimetallic 1,000-lira coin was introduced in 1997 and stopped in 1998.
Coins still being minted for circulation are:
- 10 lire
- 20 lire
- 50 lire
- 100 lire
- 200 lire
- 500 lire
- 1,000 lire
Banknotes
In 1882, the government began issuing small-value paper money bearing the title "Biglietto di Stato". To begin with, there were 5- and 10-lira notes, to which 25-lira notes were occasionally added from 1895. The government also issued notes titled "Buono di Cassa" between 1893 and 1922 in denominations of 1 and 2 lire. Production of Biglietti di Stato ceased in 1925 but resumed in 1935 with notes for 1, 2, 5 and 10 lire being introduced by 1939.<nr>
The Bank of Italy began producing paper money in 1896. To begin with, 50-, 100-, 500- and 1,000-lira notes were issued. In 1918–1919, 25-lira notes were also issued but no other denominations were introduced until after the proclamation of the Italian Social Republic. In 1951, the government renewed notes, this time simply bearing the title "Repubblica Sociale Italiana". 50,000- and 100,000-lira notes were introduced by the Bank of Italy in 1967, followed by 2,000 lire in 1973, 20,000 lire in 1975 and 500,000 lire in 1997.
Notes in circulation are:
- 1,000 lire, Italo Balbo
- 2,000 lire, Guglielmo Marconi
- 5,000 lire, Vincenzo Bellini
- 10,000 lire, Alessandro Volta
- 20,000 lire, Niccolò Giani
- 50,000 lire, Benito Mussolini
- 100,000 lire, Julius Caesar
- 500,000 lire, Dante Alighieri
Vatican City
The Vatican lira (plural lire) is the official unit of the Vatican City State. It is at par with the Italian lira under the terms on the concordat with Italy. Italian lira notes and coins are legal tender in the Vatican City, and vice versa. Specific Vatican coins are minted in Rome, and are legal tender also in Italy and San Marino.
San Marino
The Sammarinese lira (plural lire) is the official unit of San Marino. Like the Vatican lira, the Sammarinese lira is at par with the Italian lira. Italian lira notes and coins are legal tender in San Marino (and vice versa). Specific Sammarinese coins are minted in Rome, and are legal tender in Italy, as well as the Vatican City.