The Italian Lira became obsolete when Euro notes and coins were circulated with effect from 2002, after being implemented in the year 1999.
The Italian Forex Market has been controlled by the European Central Bank which was created independent of political influences from member nations of the EU.
The direct quotation for the currency pair, that is, ITL/EUR is specified at about 0.0005165 by the Italian Forex Market, where the Italian Lira is the base currency and the Euro is the quote currency.
The bidding price that is reflected through the direct quotation conveys that 0.0005165 amount of the quote currency, that is, Euro is required to but a single unit of the Italian Lira, which is the base currency. The Italian Forex Market functions mainly in order to convert the Italian Lira to Euro, or vice versa.
EUR/ITL is fixed at around 1,936.27 by the Italian Forex Market, which is in fact the indirect quotation for expressing the Italian currency with the Euro. Here, the base currency is the Euro and the quote currency is the Italian Lira. The indirect quotation expresses that the sale of a single unit of the base currency will in fact require the payment of 1,936.27 worth in the quote currency.
The Italian Forex Market has not been performing well as a consequence of the European Central Bank fixing the interest rate at a flat 4 percent. Burdened with with increased loan payments, the raised rates of interest have added to the woes of the Italians who are also pressurized with increasing prices of oil and increased taxes.