10 Euro – Malta

In 2016, Malta was firmly integrated into the Eurozone, having adopted the euro as its official currency on 1 January 2008. Consequently, the country's monetary policy was entirely set by the European Central Bank (ECB), with the Central Bank of Malta acting as a national member within the Eurosystem. The year was characterised by the ECB's ongoing accommodative measures, including historically low interest rates and a quantitative easing programme, aimed at stimulating inflation and growth across the euro area following the sovereign debt crisis. For Malta, this environment supported continued access to cheap credit and helped sustain its strong economic performance, which consistently featured one of the highest growth rates and lowest unemployment levels in the EU.

Domestically, the currency situation was stable, with no debate or movement towards reverting to the Maltese lira. The public and businesses were fully accustomed to using the euro, and the economy was reaping significant benefits from the currency's stability and elimination of exchange rate risk within its key trading partners. However, a persistent topic of discussion, as in many Eurozone nations, was the perceived downside of price level adjustments following the changeover, with some sectors of the public still attributing general price increases to the euro adoption itself rather than broader economic trends.

Looking externally, 2016 was a year of significant currency volatility for Malta's key non-Eurozone partners, notably the United Kingdom following its Brexit referendum in June. The sharp depreciation of the British pound sterling against the euro had a direct and notable impact on Malta's tourism and property sectors, which traditionally attract significant British investment and visitors. This external shock highlighted Malta's vulnerability to exchange rate fluctuations of major trading partners, even while its own currency position within the Eurozone remained solid and unchallenged.