The Cyprus Pound (CYP) was the official currency of Cyprus, an island country in the Eastern Mediterranean, until it was replaced by the euro (EUR) on January 1, 2008.
The Cyprus Pound was also known as the Lira and was issued and managed by the Central Bank of Cyprus, which served as the country’s central bank.
Fixed Exchange Rate During Euro Adoption
When Cyprus adopted the euro as its official currency, the fixed exchange rate between the Cyprus Pound and the Euro was set at 1 EUR = 0.585274 CYP.
This conversion rate allowed for a smooth transition from the Cyprus Pound to the euro.
Subdivisions and Denominations
The Cyprus Pound was subdivided into 100 smaller units called mils until 1983, after which it was subdivided into 100 cents.
Coins were issued in denominations of 1, 2, 5, 10, 20, and 50 cents, while banknotes were available in denominations of 1, 5, 10, and 20 Pounds.
Economy and Challenges
The economy of Cyprus has been significantly influenced by its strategic location in the Mediterranean and its historical connections to Europe, the Middle East, and North Africa.
Major economic sectors in Cyprus include tourism, financial services, shipping, and real estate.
Since the adoption of the euro, Cyprus has faced economic challenges such as the global financial crisis, high public debt, and a banking sector crisis, but it has also benefited from closer economic integration with the European Union.
Summary
In summary, the Cyprus Pound was the official currency of Cyprus until its replacement by the euro in 2008.
The Central Bank of Cyprus managed the currency, and it had a fixed exchange rate with the euro during the transition.
The Cyprus Pound was subdivided into cents, with various banknote and coin denominations.
Cyprus’s economy is influenced by its strategic location and historical connections, and it has faced challenges since adopting the euro, but it has also benefited from closer integration with the European Union.