Locking of pound with euro reflects sound finances

Cyprus Government Spokesman Vassilis Palmas said on Tuesday that the locking of the Cyprus pound with the euro reflected sound public finances and the robustness of the local economy.

He said the locking of the exchange rate was the capstone of the sound fiscal policy followed consistently by the government over the past years and the reward for efforts made towards achieving this goal.

”Today’s decision by the EU to lock the exchange rate of the euro with the pound, which entails the adoption of the euro in Cyprus as of 1 January 2008, reflects sound public finances and the robustness of the Cypriot economy,” he said.

He pointed out that ”the locking of the exchange rate is the capstone of the sound fiscal policy followed consistently by the government over the past years and at the same time is a reward for the efforts made by the government and organised groups and all the citizens towards achieving this aim.”

”As of today, every businessperson and every citizen will know the definitive conversion rates, with which the salaries, the pensions, the allowances, the loans, the deposits and prices in general, will be converted from pounds to euros. The locking of the exchange rate is done today, six months before the final adoption of the euro in Cyprus, so that the necessary time is given for timely preparation by all Cypriot citizens,” he said.

Cyprus joined the EU in 2004.