Bulletin on the introduction of euro in Cyprus

On 10 July 2007, the conversion rate between the Cyprus pound and the euro was irrevocably set by the Council of the EU at EUR1=CYP0,585274. This rate will come into effect on 1 January 2008 when the euro becomes the official currency of Cyprus. Until 31 December 2007, the Cyprus pound will continue to be the only official currency of Cyprus and the euro will continue to be a foreign currency.

In relation to contracts signed before 1 January 2008, but which will continue to be in effect after this date, e.g. rental agreements, sales documents, contracts for the purchase of services or products etc., it should be noted that these will continue to be in force even after the introduction of the euro, with the same terms and conditions. The only aspect which is affected is that, wherever there is a reference to a payment or to an amount in Cyprus pounds, then this will automatically be considered as referring to the corresponding amount in euro, converted using the conversion rate mentioned above, rounded to 2 decimal places, in accordance with the corresponding European regulations which are described in Information Bulletin No. 5.

Payments made by cheque, cards or other means of payment, apart from cash, will be made exclusively in euro as from 1 January 2008. The banks and co-operative credit institutions have already started supplying their customers with euro cheque books.

Cheques denominated in Cyprus pounds, dated 1 January 2008 and after, will not be valid. Consequently, the public is advised to avoid accepting cheques in Cyprus pounds dated after 31 December 2007. Cheques in Cyprus pounds issued prior to 1 January 2008 will continue to be valid, according to the existing banking practice, for a period of six months from the date of their issue and shall on presentation be paid in euro.