Programs: AA EXP 1.7 M, Hilton Gold, Hertz 5*, AARP Sophomore, 14-time Croix de Candlestick
IIRC in most of the twelve Euro countries, the national bank of the country in question is where you would need to make such an exchange. I believe that in some countries, you must go to the literal central office in the capital city.
Also IIRC, the different countries have varying lengths of time that thay will do the exchange - I think most will exchange 10 to 20 years after Euro day (January 1, 2002).
Some private exchange companies may also do the exchange (for a fee, of course).
Programs: IHG RA - PC Plat - SPG Plat - Hilton Diamond - Sixt Plat
The ONLY and official exchange rate is 1937,26 lira for one euro
You can exchange this in all the banks till 2012 but this will take that the bank will send the money to the closest central national bank and only then they will give back to you euro.
It will be much faster if you directly go to the closest office of BANCA d'ITALIA (national bank) and exchange there
Regrettably the Italian central bank has decided not to accept exchanging ITL as of 7 December 2011
I called a currency exchange house here in London, UK. They confirmed that this is indeed the case.
Extract from Bank Of Italy's website:
Exchange of lira notes and coins
With the introduction of euro notes and coins, those denominated in lire ceased to be legal tender at the end of the dual circulation period on 28 February 2002.
Pursuant to Article 26 of Decree Law 201/2011, published in Gazzetta Ufficiale no. 284 of 6 December 2011, "by way of derogation from Article 3, paragraphs 1 and 1 bis, of Law 96/1997 and Article 52-ter, paragraphs 1 and 1 bis, of Legislative Decree 213/1998, lira banknotes, notes and coins still in circulation shall lapse and be assigned to the Treasury with immediate effect".
Accordingly, as of 7 December 2011 such banknotes and coins may no longer be exchanged at the branches of the Bank of Italy.
The original pledge was to exchange ITL's for euros until 29 February 2012. One way for the Italian Government to save money, I guess. I'm not sure if they legally can get away with it though.
Even Greece still honours their old drachmas. (Until 1 March 2012)