Value of lira in 1968

The lira was valued at 625 lira : $1 US in 1968.

Converting that to today's dollars, $1 in 1968 would be worth approximately $5.56 today -- though that's just one calculation (using the CPI) and economists can (and will) argue otherwise.

 

Well, European currencies tended to be undervalued in the '60s. This is largely because exchange rates were fixed after Europe's round of devaluations in 1949 and they were purposely set low as a means of stimulating exports to catalyze economic recovery. So, it's not terribly surprising that prices would be low.

Then again, we should also remember that the average income of American men over the age of 25 in 1968 was $7900 (up from $5600 in 1958). Compared to the average income, $220 wasn't exactly cheap. And a 330 GTC cost $14,500.

 

Hi exchange rate experts,

Do you know how long the lira was fixed at 625:1? What year did they start floating it on the market? While it was fixed, what years did they make adjustments (if any) to the rate? Thanks

-Jarrett

 

Just looking at "Quattroruote" magazine (Italian) from January 1968 - the "prezzi listino" for a new 330GTC in Italy is listed as 6,500,000 lire. At 625 lire per dollar, that would mean the car would cost $10,400 at the factory.

 

No problem.

The 625:1 rate was fixed in 1949 and allowed to fluctuate around that peg +/- 1%. There were small fluctuations in 58, 59, 60, but all were within the 1% margin allowable by the Articles of Agreement of the IMF.

The 625:1 rate lasted until 1972, when the lira appreciated 6% against the dollar (the United States devalued by 5% in terms of gold and Italy followed France with a small appreciation). Thus 1972's exchange rate fell to 583:1. That rate held until 1973, when, after two small currency runs against the dollar, pegged rates were abandoned by many countries. Official use of floating rates would not begin until 1978, and between 1973 and 1978 many European Community countries (including Italy) attempted a currency union that required fixed rates, but after 1973 European exchange rates could and did fluctuate against the dollar.

1974's lira rate was 650.24:1
'75 was 652.85
76 was 832.34
77 was 883.39
78 was 848.66
79 was 830.86
80 was 856.45
81 was 1136.76
82 was 1352.51
'83 was 1518.85
'84 was 1756.96
'85 was 1909.44
'86 was 1490.81

etc. etc. etc.


Just out of curiosity, why do you ask?

 

Just a quick FYI, my source for the price of the GTC was sportscarmarket.com -- I'm not sure how accurate their prices were/are.

 

Thank you very much for you analysis. I asked simply because I have some Ferrari transactions which took place back in the 1950s and 60s that I wanted to convert to US dollars, but I had not been able to find an online source which gave exchange rates that far back. (I'll admit I did not look that hard) Anyways, thanks for your help

-Jarrett

(EDIT I was born in 1983, so I'm still in the process of learning some of the history of the markets back then)

 

Those may have been the "official" average rates for any particular year, but I remember well that circa 1984-1985 one could actually get as much as 2400 lire for a dollar "unofficially"

 

They are IMF averages - should have said that above.