10 Lire – Vatican City

In 1987, Vatican City’s currency situation was uniquely defined by its status as a sovereign city-state without an independent monetary system. As a result of the 1929 Lateran Treaty, Italy granted the Holy See the right to mint its own coins, but these were not a separate currency. Instead, Vatican lira coins were issued in strict, limited quantities and were legal tender only within Italy and San Marino, operating as a parallel issue to the Italian lira at a 1:1 parity. This arrangement meant the Vatican's coins were primarily symbolic and numismatic, circulating more as collectibles for pilgrims and tourists than as a functional national currency for daily economic activity.

The practical economy of the Vatican in 1987 relied overwhelmingly on the Italian lira for all transactions, from administrative costs to purchases in its stores. The Vatican Bank (IOR) operated within the Italian and international banking systems, dealing in major foreign currencies to manage the Holy See's global assets and expenditures. Furthermore, as a member of the European Economic Community (EEC) through a customs union with Italy, the Vatican was indirectly tied to the European Monetary System, which aimed to stabilize exchange rates among member currencies, including the Italian lira.

Therefore, the 1987 currency landscape was one of symbolic sovereignty through its own coinage, coupled with complete practical and legal dependence on the Italian monetary system. This hybrid model underscored the Vatican's peculiar position: a non-commercial, ecclesiastical state whose fiscal reality was inextricably linked to its host nation. This arrangement would persist until the introduction of the euro in 1999, when the Vatican later negotiated the right to issue its own euro coins, transitioning its currency status into the new European framework.