200 Lire – Vatican City

In 1990, Vatican City's currency situation was defined by its unique status as an independent sovereign state with a tiny, non-commercial economy. While it issued its own distinct coins and banknotes, known as Vatican lire, these were not a standalone currency. Instead, they operated under a formal monetary convention with Italy, meaning the Vatican lira was pegged at par with the Italian lira and was legal tender in both countries. This arrangement was a practical necessity, as the Vatican's economic activity—primarily fueled by museum admissions, postage stamps, and publications—was deeply integrated with Italy, relying on its larger neighbor for goods, services, and banking infrastructure.

The issuance of Vatican currency served symbolic and fiscal purposes more than economic ones. The coins and notes, often sought after by collectors for their artistic designs and limited mintage, featured the image of Pope John Paul II and generated significant seigniorage revenue (profit from minting). This income was a valuable, though modest, source of independent funding for the city-state. Crucially, the monetary convention with Italy strictly limited the volume of currency the Vatican could issue, preventing it from affecting the Italian money supply and ensuring the arrangement remained mutually agreeable.

This stable but dependent system existed within the broader context of European monetary integration. The late 1980s had seen the creation of the European Monetary System (EMS), and plans for a single currency were advancing. By 1990, it was clear that the future European Economic and Monetary Union would eventually necessitate a new agreement for the Vatican, as Italy's adoption of the euro would automatically end the lira-based convention. Thus, while the currency situation in 1990 was functionally stable, it was on the cusp of significant change driven by forces far beyond the Vatican's walls.