Cyprus becomes at midnight the 14th European Union member to join the euro-zone. The adoption of euro is being described as a landmark in the financial history of Cyprus. Malta will also adopt the euro at the same time.
Cyprus will welcome the single currency with special ceremonies on December 31, at 2330 local hours (2130 GMT) at the Ministry of Finance, in the presence of Cyprus President Tassos Papadopoulos.
The Cypriot President will make the first euro cash withdrawal from an ATM at the Ministry of Finance.
The Central Bank has already supplied commercial banks and Cooperative Central Bank with euro banknotes and coins. The Central Bank estimates that the banking sector was supplied with approximately 80% in value rather than volume of all euro banknotes needed for the national economy before January 1st and 64% of the necessary coins.
Recent surveys results indicate that the Cypriot enterprises are well prepared for the change over and have not experienced any significant problems. About 7130 businesses, including larger retailers and banks, are participating in a fair pricing code, launched by the government in July 2007.
Commercial banks and cooperative credit institutions opened their retail branches today to facilitate the public to deposit Cyprus pounds and receive euro coins. Certain branches of the banks will also open on January 1 with a view to help a smooth transition to the single currency. The public can receive euro banknotes from ATMs as from today.
For payments in cash the public can use Cyprus pounds until the end of January 2008 but all other transactions will be in euro. Cheques in pounds can be cashed in euro until the end of June next year, the Central Bank has announced.
Eurozone membership will bring important benefits to households, consumers and enterprises since the eurozone is an area of low inflation, low interest rates and a vast market of 400 million people where transparency prevails over prices of goods, Finance Minister Michalis Sarris has stressed.
The exchange rate of the Cyprus pound to the euro has been set at 0.585274. One Cyprus pounds corresponds to 1.71 euro.
