Currency
Together with some other members of European Union Italy replaced its national currency lira by euro (ˆ). Euro bills and coins were introduced in January 2002 to all 11 euro countries. Beginning July 1, 2002, the euro will be the only valid currency, completely replacing all the individual national currencies.
Until July 2002, foreign currencies must undergo a process called triangulation to be converted to euro-based currencies. The process involves two conversions: one from the foreign currency to the euro, and a second from the euro to the local currency.
Fortunately, most exchange booths post the U.S. dollar-to-local-currency exchange rate as well as the rate for the euro, thus saving travelers from whipping out their calculators. And with credit card transactions, triangulation is automatic.
Even though you don't usually need to triangulate the currency yourself, it's worth knowing the process. A traveler wanting to change U.S. dollars into lire, for example, would convert the dollar into its euro value and then multiply the total by the fixed euro-lira rate, 1,936.27 lire.
Currency Exchange
Whenever you exchange money, you may be asked to show your passport. Banks in Italy will always give you the best rates, although they nearly always charge a commission. Many have convenient branches in airports and train stations. Large cities and major tourist centers also have currency exchange bureaus (cambio) open outside of regular banking hours, and 24-hour currency exchange machines. Larger hotel desks exchange major currencies and give you a better rate than the machines. If you come on a weekend or holiday, be sure to pick up some lire before you arrive to tide you over.
Currency Accepted
Shops and restaurants will open accept Italian lire, euros, but most hotels (because they usually have exchanges) will take other major currencies as well.
Cash Access
ATMs in Italy are called Bancomats and can be found in every town large enough to have a bank. All internationally known cards and Eurocheque cards are accepted. A menu of languages comes up when you insert your card. Make sure to read the instructions carefully. Banks will also give you a cash advance from a credit card. It's wise not to depend entirely on one card, however. Italy is an expensive country, and it's easy to go past your credit limit.
Travelers' Checks
Travelers' checks are the safest way to carry cash in Italy: for the best deals, get them in euros, especially if you plan to travel elsewhere in the European Union. Travelers' checks are widely accepted in the pricier hotels and car rental firms, but otherwise you'll be expected to exchange them into cash before making a purchase. Banks usually charge a one percent commission, or a flat fee to exchange them. American Express, with offices in the larger cities, exchanges them for free. Thomas Cook offices will exchange their own brand for free as well. Again, always bring your passport.
Credit Cards
Most credit card companies charge an exchange fee for foreign purchases, some quite high--check before you leave. Italians don't really like credit cards, and although most hotels, car rental offices, larger restaurants, city shops, and gas stations accept them, smaller establishments and places off the beaten track often don't. Always check the little stickers in the window.
