We are pleased to announce that our strategically important goal of joining the Exchange Rate Mechanism II (ERM II) has been achieved. A relevant communiquι was issued Friday night, 29 April 2005, following the meeting of the competent European Union authorities.
This important goal has been achieved after coordinated and intense efforts and consultations by both the Ministry of Finance and the Central Bank of Cyprus. In this regard, the consistent implementation of the Convergence Programme by the government has played a critical role and has been welcomed by the recent ECOFIN meeting.
As expected, the central rate of the Cyprus pound has been maintained at 1 euro = 0,585274 pound, while the standard fluctuation margins of ±15% will continue to be observed. The entry of the Cyprus pound into ERM II signifies the formal recognition by our European partners of the successfully stable course of our currency and allows the continuation of this course until the adoption of the euro.
The entry of the Cyprus pound into ERM II is certainly a great success, but at the same time it marks a new beginning for intensified efforts aimed at further fiscal consolidation and enhancement of economic growth and ultimately, through these, at the progress and prosperity of the Cypriot people. The Ministry of Finance and the Central Bank declare their determination to continue and strengthen their [unrelenting] efforts towards this objective [, without relaxation or complacency].