Cyprus and The Euro: More than just a Currency Conversion
 
 
On the 1st of January 2008 the Euro will become Cyprus’ official currency while since the 10th of July 2007 the rate of the Cyprus Pound against the Euro has been fixed. The stability of the Cyprus Economy and its reaction to this prospect has been impressive. Very little pressure has been exercised; inflation stayed at low levels and unemployment is still one of the lowest worldwide despite a large influx of people from other European countries coming to the island looking for employment.
 
As from the 1st of January the Cyprus pound will be accepted in parallel with the Euro for a period of one month, at which time the Euro will become the sole currency in circulation. However, for the public's convenience, prices will still appear in both currencies for a period of six months. According to local Government officials as well as the European Commission, inflation pressures are not expected.
 
The healthy picture of the Cyprus Economy, the size of the island (remember, you cannot produce land...), it's stability, its popularity and now its currency contribute to bright expectations for 2008.  Additionally, Cyprus ranks as a very high preference for overseas investors from the United Kingdom, Russia, Ukraine as well as Scandinavian countries.
 
Chris Calogirou - MBA