On 10 July 2007, the Council of the European Union approved Cyprus’ application to join the euro area on 1 January 2008.
On 1 January 2008, the euro (EUR) will become legal tender in Cyprus, replacing the Cyprus pound (CYP) at the irrevocably fixed exchange rate of €1 = CYP 0.585274. The prompt pre-distribution of euro cash to professional third parties prior to 1 January 2008 will help to ensure a smooth cash changeover, alleviate the logistical burden and reduce the costs of dual currency circulation. In accordance with the current time schedule, the pre-distribution of euro banknotes to banks will commence on 19 November 2007; coins will already be pre-distributed as from 22 October 2007. As of these dates, some of this cash will be pre-distributed to retailers and other companies (“sub-frontloading”). In addition, the Central Bank of Cyprus, banks and co-operative credit societies will start selling euro coin starter kits to the public on 3 December 2007. The pre-distribution of euro banknotes and coins is regulated by ECB Guideline ECB/2006/9.
As from 1 February 2008, only euro banknotes and coins may be used for payments in Cyprus, but banks and co-operative credit societies will be able to exchange Cyprus pound banknotes and coins free of charge at the fixed conversion rate until 30 June 2008. Fees will be charged if the amount per customer and transaction exceeds CYP 1,000 for banknotes, and CYP 50 for coins. Thereafter, it will still be possible to exchange Cyprus pound banknotes for ten years and coins for two years at the Central Bank of Cyprus.
|“Sub-frontloading” of coins to companies||22 October 2007|
|“Sub-frontloading” of banknotes to companies||19 November 2007|
|Sale of euro coin starter kits to the public||3 December 2007|
|Account conversions and introduction of the euro banknotes and coins||1 January 2008|
|Last day on which Cyprus pound banknotes and coins will be legal tender||31 January 2008|
|Exchange of Cyprus pound banknotes and coins by banks and co-operative credit societies free of charge||until 30 June 2008|
|Deadline for exchange of Cyprus pound coins by the Central Bank of Cyprus||31 December 2009|
|Deadline for exchange of Cyprus pound banknotes by the Central Bank of Cyprus||31 December 2017|
In connection with the introduction of the euro in Cyprus, the national central banks of the Member States that have adopted the euro will exchange Cyprus pound (CYP) banknotes against euro at par value until 29 February 2008. This service is free of charge.
The amount is limited to €1,000 for any given party/transaction on any one day and can be performed at the following locations:
Further details are specified in ECB Guideline ECB/2006/10 of 24 July 2006 on the exchange of banknotes after the irrevocable fixing of exchange rates in connection with the introduction of the euro.back to top