Montecaran libra

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Montecaran libra
libra Montecarà (Montecaran)
MC-L50obv.png
A currently issued 50-libra note
ISO 4217
CodeMCL
Denominations
Subunit
 1/12
1/100
ònçia (historic)
çèntima (electronic only)
Plurallibrà
 ònçia (historic)
çèntima (electronic only)
onçià
çentimà
SymbolŁ
 ònçia (historic)
çèntima (electronic only)
ø
ℂ (rarely)
Banknotes
 Freq. usedŁ20, Ł50, Ł100, Ł200
 Rarely usedŁ500
Coins
 Freq. usedŁ1, Ł2, Ł5, Ł10
Demographics
User(s) Montecara
Issuance
Central bankBanca de Montecara
 Websitebanca.go.mc
Valuation
Pegged withAininian louré (ANL)
Value1 ANL = 1.60 MCL

The Montecaran libra is the official currency of Montecara, issued by the Bànca de Montecara. It is pegged to the value of the Aininian louré at the rate of 1 ANL to 1.60 MCL.

History

The libra is ultimately derived from the troy pound of silver that formed the basis of the monetary system in the Latin Republic. The name “libra” is in fact the Latin word for “pound.” From classical times to 1870, the libra was on the silver standard; between then and 1951, it was on a bimetallic gold and silver standard, where the price of gold was periodically readjusted to the price of silver. The convertibility of the libra to gold ended when the Aininian louré was taken off the gold standard; the Bànca de Montecara chose to adopt a fixed exchange rate to the louré rather than issuing the libra as fiat currency with a floating exchange rate.

Until 1982, the libra was subdivided into 12 onçià, though coins were last made in that denomination only in 1960. After decimalization, the libra was divided into 100 çentimà instead, though the unit exists for electronic transfers only and has never been produced in coin or bill form.

Exchange rate

The Bànca de Montecara, Montecara's central bank, sets the rate of exchange between the libra and the louré. It was last changed on 1 July 2002, when it was lowered from 1 ANL = 1.67 MCL to the current 1.60 MCL.

The Bànca has described a number of advantages that Montecara obtains from having a fixed exchange rate to the louré, including:

  • Fiscal predictability thanks to a libra that is tied to a stable reserve currency
  • The ability of the state to buy commodities on the international market at competitive prices
  • Stable terms of trade with Montecara's most important trading partner

Economists have conversely noted that, because Montecara does not impost capital controls because of its important financial sector, the fixed exchange rate leaves it with little to no control over its monetary policy. Because of the fixed exchange rate, the Bànca must hold the equivalent value in louré to all libra in circulation. This means that Montecara is an aggressive purchaser of Aininian government debt, and that Aininian bonds form the bulk of the Bànca's foreign reserve portfolio.

Coins

Image Value Description
Obverse Reverse
Libra1.png Ł1 Denomination, bank mark, and year Emblem of Cròxa, symbolizing the six sieteri of the old city
Libra2.png Ł2 Denomination, bank mark, and year Wreath of coral and trident
Libra5.png Ł5 Denomination, bank mark, and year Scallop shell and waves
Libra10.png Ł10 Denomination, bank mark, and year Coat of arms of Montecara

Banknotes

Image Value Description
Front Back Dimensions (mm) Front Back
Ł20 116 × 72 Captain-General Càrle Xèno Seascape with Montecaran galleys
MC-L50obv.png MC-L50rev.png Ł50 135 × 82 Painter Tixàn Vecèlo and his masterpiece Neptune Offers the Wealth of the Sea to Montecara Apollo Pursuing Daphne by Tixàn Vecèlo
Ł100 165 × 106 Architect Arnòld di Buçhe Pànteon Nuova
Ł200 181 × 115 Diplomat Mària Àgrite Arc da Liberàxon
Ł500 200 × 125 Explorer Enrico Dulio Palaço Pùblico