5 Euro – Malta

In 2021, Malta remained a committed member of the Eurozone, using the euro (€) as its sole legal tender. This adoption, which began in 2008, provided the small island nation with significant economic stability, particularly during the global turbulence of the COVID-19 pandemic. The common currency insulated Malta from exchange rate volatility, facilitated seamless trade with its main European partners, and provided access to the European Central Bank's supportive monetary policies. Domestically, price stability was largely maintained, though the country, like the rest of the Eurozone, experienced a period of low, but rising, inflation driven by global supply chain disruptions and recovering energy prices.

The year was nonetheless marked by a specific financial controversy related to currency controls. In response to being placed on the FATF (Financial Action Task Force) "grey list" for money laundering concerns in June 2021, Maltese authorities and financial institutions enacted de facto stricter controls on large cash transactions. While not official capital controls, banks became increasingly cautious, often requiring extensive documentation for significant euro deposits or transfers, particularly from non-resident clients. This created operational challenges for some businesses and individuals, highlighting how regulatory pressures could impact the practical flow of currency within a Eurozone member state.

Overall, the euro's framework provided a bedrock of macroeconomic stability in 2021, allowing Malta's economy to rebound strongly with one of the fastest growth rates in the EU. The primary currency-related issues were not about the euro itself but were ancillary, stemming from the country's efforts to strengthen its anti-financial crime framework to regain international standing. Consequently, the year underscored the dual reality of being in a monetary union: benefiting from shared stability while also being subject to collective regulatory scrutiny and the need to maintain robust national financial governance.