Lira/euro fixed rate

Earlier this year the government introduced a capping of the lira against the euro at a rate of Lm0.4224/€1. Unfortunately, it appears that this fact has escaped the attention of a few retailers.

In the first week of August I took my kids out for a snack at a popular commercial complex in the St Julians area; the bill amounted to Lm9.05, yet to my surprise the euro amount quoted was €24.89. This works out at a rate of 0.36 or a variance of an amazing 14.7 per cent on the capped rate.

Another purchase on the same day from the Sliema area was converted at a rate of 0.39 (a variance of 7.14 per cent).

While not affecting local consumers at this stage, it is clear that some outlets are exploiting the situation in their favour by overcharging tourists to achieve greater profitability.

This is in contrast to the government's declarations on the importance of our local products remaining price competitive vis-á-vis other tourist locations.

Should this trend prevail, once we convert into euro, inflation rates (which are already high) will go through the roof, to the detriment of local consumers.

It would be interesting to know if regular inspections are carried out to ensure compliance to the capped rate. Or is it only the working class that is expected to contribute to make Malta more attractive to tourists?