Euro observatories play important role, says Finance Minister

Minister of Finance Michalis Sarris has said the Euro Observatories in Cyprus have an important role to play in the effort to consolidate trust between consumers and businessmen.

Sarris, who was visiting the Euro Observatory in the coastal town of Larnaca, said the message from the various Euro Observatories in Cyprus is that “we are on course nearing the finishing line to achieve a smooth transition to the single European currency, the euro, as scheduled on January 1st next year.”

He added that double pricing of goods and the Fair Pricing Code are two significant moves towards the successful introduction of the euro, noting that many firms have already adopted the Code and were allocated the special logo which they can display to inform consumers about their commitment to carry out the changeover to the euro fairly, without seeking any advantage.

On July 10, the European Union Finance Ministers (ECOFIN) set the permanent conversion rates of the Cyprus pound against the euro. One euro will be worth 0.585274 Cyprus pounds (CYP/EUR: 1.71).

Cyprus, together with Malta, will join the euro area on January 1, 2008, less than four years after joining the European Union, bringing the eurozone states to 15.

Asked about the changeover on the night of December 31, the Minister said that each organisation, bank, enterprise are getting ready and have the responsibility to make their own conversion in line with the permanent conversion rates and be ready for January 1.

Sarris explained that in January 2008, the euro as well as the Cyprus pound will both be legal tender.

“During January we will pay in Cyprus pounds and receive change in euro. As of January 30, all payments will be in euro,” he concluded.