With the departure of 2007, another monetary unit of Europe, the Cypriot pound, will go down in history. Euro – the currency used by more than 300 million Europeans in 13 countries, will become the official currency of Cyprus and Malta from January 1.
The Cyprus Pound, also called the Lira, has existed since 1879. It was one of the “heaviest” world currencies: a fixed rate of 0.585 pounds was set for the euro.
According to the Central Bank of the Republic of Cyprus, the country is fully prepared to switch to a new currency. For cash circulation, more than 80 million bundles of banknotes were procured for a total amount of 1.7 billion euros. The bank also has 395 million coins for a total of 100 million euros.
Cyprus Economy Minister Michalis Sarris told the Athens News Agency that the introduction of the euro will have a positive effect on the country’s economy.
“Joining the euro zone will give real benefits for the economy, companies and, as a result, for ordinary citizens,” the minister said.
According to him, the euro will reduce the interest on loans, give an impetus to the development of exports, eliminate the costs associated with the lira exchange rate, and households and enterprises will have direct access to large capital markets in the Eurozone. Macroeconomic stability will increase, and low inflation will help, above all, low-income citizens. It will be easier for the consumer to compare prices in their country with pan-European prices.
The northern territories of the island, where the self-proclaimed Turkish Republic of Northern Cyprus exists, are planning to switch to the euro. To date, the Cypriot pound has been widely used in these territories, and now the euro will take its place, along with the Turkish lira. However, the Government of the Republic of Cyprus does not agree with the official use of the euro in the north of the island.
“It is expected that Turkish Cypriots will also use the euro in their calculations, since it is a very stable currency. But it should be emphasized that the unilateral introduction of the euro in the occupied territories as an” official “currency from a legal, political and economic point of view is undesirable and unacceptable.” – said the Minister of Economy of the Republic of Cyprus.