1 Scudo – San Marino

In 1974, San Marino’s currency situation was fundamentally defined by its close economic and monetary integration with Italy, governed by a series of bilateral treaties. The most important of these was the Convention of 1939, which established the Italian Lira as legal tender within the republic and granted San Marino limited rights to mint its own coinage. These Sammarinese coins, denominated in lire, were legally equivalent to their Italian counterparts and circulated interchangeably, but they were produced in strictly limited quantities, primarily for commemorative and collector purposes rather than for driving the domestic economy. The country had no central bank and did not issue paper currency, relying entirely on Italy for its circulating medium.

The year 1974 fell within a period of significant economic strain for the Italian Lira, which directly impacted San Marino. The early 1970s were marked by the collapse of the Bretton Woods system, the 1973 oil crisis, and high inflation across Europe. Italy experienced severe economic instability, with rampant inflation and frequent lira devaluations. As a consequence, San Marino, with its economy pegged to Italy's, imported this monetary instability. Prices rose, and the purchasing power of the lira held by Sammarinese citizens eroded, highlighting the republic's lack of independent monetary policy tools to buffer such external shocks.

Despite this turbulence, the existing system remained unchanged in 1974. The arrangement provided undeniable stability in terms of exchange mechanisms and trade with Italy, which was essential for the enclave's survival. However, the year underscored the inherent vulnerabilities of this dependency. Discussions about greater economic autonomy occasionally surfaced, but any move toward a distinct monetary policy was politically and practically unfeasible. Thus, 1974 was a year that reinforced the status quo of monetary union, with San Marino passively weathering the inflationary storm emanating from Rome, a reality that would persist until the later introduction of the Euro.