Montecaran libra

Montecaran libra
lìbra Montecarà (Montecaran)
MC-L50obv.png
A currently issued 50-libra note
ISO 4217
CodeMCL
Denominations
Subunit
 1/12
1/100
ònçia (historic)
çèntima (electronic only)
Plurallibrà
 ònçia (historic)
çèntima (electronic only)
onçià
çentimà
SymbolŁ
 ònçia (historic)
çèntima (electronic only)
ø
none
Banknotes
 Freq. usedŁ20, Ł50, Ł100, Ł200
 Rarely usedŁ500
Coins
 Freq. usedŁ1, Ł2, Ł5, Ł10
Demographics
User(s) Montecara
Issuance
Central bankBànca de Montecara
 Websitebanca.go.mc
Valuation
Pegged withEuclo (EUC)
Value1 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
Libra1.png Ł1 Denomination, bank mark, and year Heraldic arms of Saint Stephen
Libra2.png Ł2 Denomination, bank mark, and year Wreath of coral and trident
Libra5.png Ł5 Denomination, bank mark, and year Scallop shell and waves
Libra10.png Ł10 Denomination, bank mark, and year Coat of arms of Montecara

Banknotes

Image Value Dimensions
(mm)
Ł20 116 × 72
MC-L50obv.png MC-L50rev.png 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