Cyprus joining the rest of Europe

The first day of the year 2008 will be different than any other New Year day in Cyprus. The Euro will become the official currency in Cyprus like in all other 12 countries in Europe who have already adopted the new European currency since 2002 and which has since been used by over 300 million citizens.

On 2 May 2005 Cyprus, having met the convergence criteria, has joined the EMU and has since then locked its exchange rate against Euro at 0,585274 with a 15% flexibility range for the following two years. It is expected that on 1 September 2007 the conversion rate will eventually be locked and the process of conversion will commence. All prices in Cyprus will need to be displayed in both currencies from July 2007 something that will continue for another six months after the impact day.

All monetary assets in Cyprus (Bank accounts, Stocks, Financial contracts etc) will automatically be converted to Euro on 1.1.2008 and Cypriot citizens will only receive change in Euro. One month later, by the end of January 08, the Cyprus pound will no longer be accepted for payments.

If you would like to find out more in relation to the road to Euro please visit the official web site of Central Bank of Cyprus