AM-Lira(redirected from Allied Military Lira)
Currency that was legal tender in some Allied-occupied parts of Italy during World War II. The AM-lira was issued when soldiers could not be paid in the local currency and because paying them in U.S. dollars posed the risk of high inflation due to the fact that the dollar had a high value at the time relative to most European currencies. Military leaders declared Allied Military Currency legal tender and required local retailers and others to accept it as payment. Nevertheless, the AM-lira was subject to high inflation. It was issued between 1943 and 1945.