World Travel Guide Search for a City   Destination Guides > Europe & Russia > Europe > Italy Italy •  Italy •  Where To Go •  Getting There •  Red Tape And Visas •  Insurance And Health Cover •  Costs, Money And Banks •  Travellers With Disabilities •  The North-south Divide •  Getting Around •  Food And Drink •  Communications: Post, Phones And The Media •  Trouble And The Police •  Women? And Sexual Harassment •  Work And Study •  History •  Best Of •  Information And Maps •  Health •  Opening Hours And Public Holidays •  Festivals •  Sports And Outdoor Pursuits •  Directory •  Painting And Sculpture •  Architecture •  Mafia, 'Ndrangheta, Camorra: Socialized Crime In Southern Italy •  Language •  Explore Italy ITALY - COSTS, MONEY AND BANKS Italy    view all cities Top Destinations •  Florence (Firenze) •  Genoa •  Milan (Milano) •  Naples •  Padua •  Palermo •  Pisa •  Rome •  Siena •  Turin (Torino) •  Venice •  Verona •  Vicenza   Until the euro currency was introduced in 2002 , the Italian unit of money was the lira (plural lire), abbreviated as L or £. The exchange rate hovers around £3000 to the pound sterling, about £1800 to the US dollar. Banknotes come in denominations of £1000, £2000, £5000, £10,000, £50,000 and £100,000, and coins as £50, £100, £200, £500 and £1000; there is more than one version of almost any coin, so check your change. In recent years the economic boom and the glut of visitors in the more touristy cities have conspired to increase prices in Italy. However, the weak lira - and now, the weak euro - often results in highly favourable exchange rates for sterling and US dollars, which helps keep real costs down. Generally you'll find the south much less expensive than the north: as a broad guide, expect to pay most in Venice, Milan, Florence and Bologna, less in Rome, while in Naples and Sicily prices come down to fairly reasonable levels. The euro Italy is one of twelve European Union countries who have changed over to a single currency, the euro (E). The transition period, which began on January 1, 1999, is however lengthy: euro notes and coins were not issued until January 1, 2002, with lira remaining in place for cash transactions, at a fixed rate of 1936.27 lire to 1 euro, until scrapped entirely at the end of February, 2002. Even before euro cash appeared in 2002, you could opt to pay in euros by credit card and you can get travellers' cheques in euros - you should not be charged commission for changing them in any of the twelve countries in the euro zone (also known as "Euroland"), nor for changing from any of the old Euroland currencies to any other (French francs to lira, for example). All prices in this guide are given in lira and the exact equivalent in euros. When the new currency takes over completely, prices are likely to be rounded off - and if decimalization in the UK is anything to go by, rounded up. Euro notes are issued in denominations of 5, 10, 20, 50, 100, 200 and 500 euros, and coins in denominations of 1, 2, 5, 10, 20 and 50 cents and 1 and 2 euros. Average costs A number of basic things are reasonably inexpensive: a pizza or plate of pasta with a beer (the staple cheap meal in a restaurant) will set you back between £5/$8 and £10/$16 on average, though in some of the larger, more visited cities - Florence and Venice, for example - it can be difficult to find appealing venues in this price range; Rome and Naples, on the other hand, are no problem. Buses and trains are cheap too: the rail journey from Rome to Milan on an Intercity train, for instance, costing just £46/$74 for a second-class return - a five-and-a-half-hour, six-hundred-kilometre trip. Drinking , by contrast, is pricey - unless you stick to wine. Soft drinks and coffee cost around the same as in Britain and more than in North America; a large glass of beer can cost up to £3/$5 if you decide to sit down. Room rates start at a bottom line of £15/$24 for the most basic double room in a one-star hotel, although again in Milan, Florence or Venice it's hard to find anything under £25/$40. Overall, in central Italy, if you're watching your budget - camping, buying food from shops and markets - you could get by on around £25/$40 a day; a more realistic average daily budget - staying in one-star hotels, taking trains and eating one cheap meal out a day - would be approaching £40/$64, perhaps a little less in the south; while to live reasonably well you probably need to spend at least £50/$80 a day. Bear in mind, too, that the time of year can make a big difference. During the height of summer, in July and August when the Italians take their holidays, hotel prices can escalate; outside the season, however, you can often negotiate much lower rates. Apart from state museums and sites, which are free to under-18s and over 65s, and half price to people under 26, there are few reductions or discounts: only a handful of museums accept ISIC cards, and buses and trains never do. Credit and debit cards, and travellers' cheques The most painless way of dealing with your money is probably by using credit or debit cards, which, in conjunction with your personal identification number (PIN), give you access to cash dispensers (Bancomat). Found even in small towns, these accept all major cards, with a minimum withdrawal of £50,000/?25.82 and a maximum of £500,000/?258.23 per day. Cards can also be used for cash advances over the counter in banks and for payment in most hotels, restaurants, petrol stations and some shops; for all these transactions you will pay a fee of 1.5 percent, but the rate of exchange will be in your favour. If you have an Australian or New Zealand key or debit card, arrange for cirrus, plus or maestro withdrawl facilities to be added before you leave home. You will be charged for withdrawing cash but the rates compare favourably. A safer option is to carry your money in the form of travellers' cheques, available from any British high-street bank, whether or not you have an account, as well as post offices and some building societies. Most American and Canadian banks sell American Express cheques, and they're widely accepted; your local bank will probably also sell one or more of the other brands. To find the nearest bank that sells a particular brand, or to buy cheques by phone or over the Internet, contact the following companies: American Express (tel 1-800/673-3782, www.americanexpress.com ), Citicorp (tel 1-800/645-6556, www.citicorp.com ), MasterCard International/Thomas Cook (tel 1-800/223-7373, www.thomascook.com ), Visa (tel 1-800/227-6811, www.visa.com ). The usual fee for travellers' cheque sales is 1 or 2 percent, and it pays to get them in either sterling or dollars. Make sure to keep the purchase agreement and a record of cheque serial numbers safe and separate from the cheques themselves. In the event that cheques are lost or stolen, the issuing company will expect you to report the loss forthwith to their nearest office; most companies claim to replace lost or stolen cheques within 24 hours. You'll usually - though not always - pay a small commission when you exchange money using travellers' cheques - again around 1 percent of the amount changed, although some banks will make a standard charge per cheque regardless of its denomination - usually around £6000/?3.10. It's worth knowing that Thomas Cook offices don't charge for cashing their own cheques, and American Express offices don't charge for cashing anyone's cheques. It's an idea to have at least some Italian/euro cash for when you first arrive. You can buy lire over the counter in British banks; most American banks will need a couple of days' notice. Banks and exchange In Italy, you'll get the best rate of exchange ( cambio ) at a bank . There are a few nationwide banking chains - the Banca Nazionale del Lavoro, Crédito Italiano and Cassa di Risparmio, among others - as well as regional chains like the Banca di Roma, Banco di Napoli or Banco di Sicilia. Banking hours are normally Monday to Friday mornings from 8.30am until 1pm, and for an hour in the afternoon (usually 3-4pm). There are local variations on this and banks are usually open only in the morning on the day before a public holiday. Be warned that changing travellers' cheques in a bank can entail a long wait - up to half an hour - so make sure you're in the right queue. Outside banking hours, the larger hotels will change money or travellers' cheques, although if you're staying in a reasonably large city the rate is invariably better at the train station exchange bureaux - normally open evenings and weekends. Check the "Listings" sections of the main city accounts in the Guide for locations and specific opening hours. Emergency cash If you run out of money, or there is some kind of emergency, you can have money sent out by contacting your bank at home and have them wire the cash to the nearest bank , but bear in mind that this is an expensive way to send and receive money abroad and can, in some cases take weeks not hours; it should be considered only as a last resort. Many banks have reciprocal arrangements with banks in Italy through which transfers are likely to prove less expensive - check with your bank before travelling. Alternatively you can use a specialist money wiring agency . The cash should be available for collection, usually in local currency, from the company's local agent (who will make a small charge of roughly £1/$1.50 for tax) within a few minutes of being sent. Western Union or Moneygram charge on a sliding scale (in the UK, roughly £12 for sending £100, £35 for £500, £80 for £2000), so sending larger amounts of cash is better value. Thomas Cook have a much cheaper flat rate (£25 in the UK) but it takes one or two days for the money to arrive.