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Cyprus and the Euro

Benefits and problems from the EU membership.

Cyprus and the Euro

Postby magikthrill » Mon Aug 01, 2005 9:07 am

i think this might have been discussed before but there is no specific thread for this and ive been wondering. have the euro and the cyprus pound reached a steady exchagne rate until the introduciton of the euro into cyprus or no?

also when is it expected to come to Cyprus and is the date official or just tentative?
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Postby fi » Mon Aug 01, 2005 3:03 pm

Cyprus, Malta and Latvia entered the European Exchange Rate Mechanism (ERM II) on Friday, a step which could lead to them adopting the euro as soon as 2007, the European Union said.
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Postby magikthrill » Mon Aug 01, 2005 3:45 pm

fi what exactly is the ERM II? do these ocuntries have fixed exchange rates with the Euro now or will this be established on the date of entry?
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Postby fi » Mon Aug 01, 2005 5:46 pm

I think but can't swear by it that there is a "fixed rate" and the exchange rate can swing +-15% from that value.
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Postby coredump » Wed Aug 03, 2005 12:01 am

It is not fixed. Instead in order to be accepted for joining eurozone in 2007 Cyprus (and other countries) have now obligation to keep exchange rate fluctuation no more than +-15%.
Try to search at http://europa.eu.int/ for more information.
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Postby magikthrill » Wed Aug 03, 2005 12:04 am

gotcha... thanks
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Postby fi » Thu Aug 04, 2005 7:51 pm

Actually it is around a fixed rate. Currencies in ERM II are allowed to float within a range of ±15% with respect to a central rate against the euro.

Currency
Cyprus Pound

Central Rate
0.585 274
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Postby magikthrill » Thu Aug 04, 2005 8:19 pm

so does this mena the fixed rate will not be determined until the 1/1/2007 or do you believe it will be fixed sometime before that?

im asking because i remember that the greek drachma was set with the euro at a fixed rate well before 1/1/2002 and stores were obliged to show the prices in both drachma and euro. wondering if that will be possible with the cyprus pound and the euro though if the exchange rate continues to fluctuate on a daily basis.
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Postby nina__2b » Sun Aug 21, 2005 11:32 am

Ok u propably all know this but since I don't, I have to ask: How many cyp is 1 euro??
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Postby Piratis » Sun Aug 21, 2005 11:53 am

1 Euro is 0.57 CY pounds (= 57 CY cents).
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