Italy's traditional currency before the euro was the lira. The Italian lira became the currency of the unified Kingdom of Italy in 1861, although the term and related monetary systems had been used in Italian territories earlier. It was divided into 100 centesimi, comparable to cents in many modern currencies.
The name lira comes from libra, the Latin word for a pound of weight. This connects it historically with other European currency names, including the French livre and the British pound. The Napoleonic Kingdom of Italy introduced a lira aligned with the French franc in 1807.
The euro became Italy's official unit of account in 1999, but Italians continued using lira notes and coins during a transition period. Euro cash entered circulation on January 1, 2002, and lira ceased to be legal tender at the end of February that year. The fixed conversion rate was 1,936.27 lire to one euro.