Speech by Athanasios Orphanides, Governor of the Central Bank of Cyprus, on the occasion of the setting of the euro conversion rate of the Cyprus pound
Nicosia, 10 July 2007
Dear friends and colleagues,
Cyprus is celebrating a very special event today, which should make all of us proud. We have the green light from the European Union to adopt the euro on 1 January 2008.
Together with every Cypriot citizen, the Central Bank celebrates today’s decision. The decoration of the premises of the Bank with special banners, prepared in cooperation with the European Central Bank, the light installation, as well as other upcoming activities reflect this celebratory atmosphere and serve to highlight the importance of this historical decision.
Earlier today the conversion rate between the Cyprus pound and the euro was fixed: A pound is worth around 1,7 euro, or more precisely, 1 euro is worth 0,585274 Cyprus pounds. The Cypriot citizen would do well to remember this six digit number.
From 1 September 2007 until 30 September 2008, when the dual display of prices will be obligatory, we will be coming across this number in our every day life. The dual display of prices will make our life easier and help us get acquainted with prices in euro and at the same time it will discourage unjustified price increases and abuses during the changeover.
1 euro is worth 0,585274 Cyprus pounds. On 1 January 2008, the Cyprus pound will be replaced by the euro at that conversion rate. On the same date, everything, bank accounts, loans and deposits, salaries and pensions, etc., will be converted into euro at this rate. This will occur automatically and free of charge.
Businesses and the broader public sector, knowing the conversion rate can now speed up and conclude the required adjustment of their accounting and software systems.
As from tomorrow, the minting of the Cyprus euro coins will start, a task undertaken on our behalf by the Finnish mint. In addition, the procedures for supplying Cyprus with euro notes, with help from the Bank of Greece, can now be finalized. We expect that the cash changeover will proceed smoothly, in line with the plans already prepared by the Central Bank of Cyprus.
Dear friends and colleagues,
The time has come for every Cypriot to believe in our country’s ability to achieve the smooth changeover to the euro. We trust that the voluntary adoption of the Code of Fair Pricing by as many businesses as possible, together with the compulsory dual display of prices and the functioning of the euro observatories will further enhance consumers’ confidence.
Taking this opportunity, I would like to call on all businesses to sign the Code, as it will have a positive bearing on them as well.
To be sure, in order for these measures to succeed in discouraging any unjustified price increases we are looking forward to the assistance of every Cypriot citizen, who, particularly in the first days following the introduction of the euro, should be vigilant and report to his/her regional euro observatory any attempts to exploit the changeover to the euro.
To conclude, I would like to invite all stakeholders, businesses as well as the public at large to come aboard and make every effort together with the Ministry of Finance and the Central Bank of Cyprus to achieve a smooth changeover from the pound to the euro. Cyprus can and must achieve this objective.