# Battle for the Lira

The Battle for the Lira was an economic policy undertaken by the Fascists in Italy during the 1920s as an attempt to raise the claims of Italy becoming a great power.
* This article is part of a series about Benito Mussolini
Political views
Duce of Fascism
Fascist Manifesto
Italian fascism
Spazio vitale
Economic policies
Racist policies
Leggi razziali
Manifesto della razza
Fascist propaganda
Model of masculinity
Parties
Italian Socialist Party (1901–1914)
Fascio d'Azione Rivoluzionaria (1915–1919)
Fasci Italiani di Combattimento (1919–1921)
National Fascist Party (1921–1943)
Republican Fascist Party (1943–1945)
Elections
1924
1929
1934
Historical events
Biennio Rosso
March on Rome
Mussolini government
Italy under Fascism
Corfu incident
Murder of Giacomo Matteotti
Aventine Secession
Assassination attempts
Battle for Grain
Battle for Land
Battle for the Lira
Battle for Births
Second Italo-Senussi War
Abyssinia Crisis
Second Italo-Ethiopian War
Foundation of the Empire
Spanish Civil War
Munich Agreement
Invasion of Albania
Rome-Berlin Axis
Pact of Steel
World War II
Fall of the regime
Mussolini's rescue
Italian Social Republic
Italian Civil War
Government of the RSI
Death :
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## Background

When Benito Mussolini took over as Prime Minister of Italy in 1922 the economy was in a bad state following World War I. Between 1922 and 1925, the financial and economic situation generally improved dramatically and this helped to increase the power of Italy, who strived to be one of the world's leading countries.
Italy wanted to restore some of its purchasing power. But in order for this to happen it was vital that they strengthen the lira. Mussolini took the view that a weak lira would look bad for the country when presenting Italy as a great power across Europe and the United States.

## Details
### Aims

The policy had a number of aims. These comprised:
* to fix the lira at a rate of Lit. 92.46 ("Quota 90") to sterling (£ stg)
* to reduce inflation
* to confirm the image of Fascism bringing stability
* to show the world that Italy could be a great force, with a strong, desirable currency
In October 1922 (when Mussolini first became prime minister), Lit. 90 to £1 stg had been the prevailing rate but it had declined sharply, even reaching Lit. 150 to £1 stg in 1926.

### Actions

The policy was confirmed at the Pesaro Speech on 18 August 1926 and was given the name Quota 90, referring to the value they wanted to achieve.

## Results

The revaluation hit Italy's export trade, but, by making imports cheaper, benefited heavy industries, such as steel and chemicals, which relied on imported raw materials. These industries later provided the basis for an expanded rearmament industry and so supported the 'active' foreign policy, which became the chief characteristic of the fascist state. Tariffs on undesirable imports such as consumer goods and foodstuffs kept their high price and restricted demand, protecting Mussolini's Battle for Grain policy. However, Italian workers were pressured into accepting wage cuts to match the new value of the lira to the point where wages fell more than food prices and living standards for working-class Italians rapidly declined.