Published on November 12, 2007

Euro cash changeover in Cyprus and Malta

Following the approval by the Council of the European Union on 10 July 2007, the euro will become legal tender in the Republic of Cyprus and the Republic of Malta as of 1 January 2008.

On this date all Cyprus pound and Maltese lira balances in bank accounts will be converted into euro automatically and free of charge. Furthermore, as of this date only euro will be used in electronic payments.

The dual circulation period will last from 1 to 31 January 2008. During this period it will be possible to pay with either Cyprus pound (CYP) or euro banknotes and coins in Cyprus, and with either Maltese lira (MTL) or euro banknotes and coins in Malta. As of 1 February 2008 only euro banknotes and coins will be accepted for cash payments in Cyprus and Malta.

Cypriot banks and cooperative credit societies will exchange Cyprus pound banknotes and coins for euro banknotes and coins at the irrevocably fixed conversion rate of €1 = CYP 0.585274 until 30 June 2008.

This service will be free of charge for exchanged amounts of at least up to CYP 1,000 per person and transaction in the case of banknotes and CYP 50 per person and transaction in the case of coins. For higher amounts Cypriot banks and cooperative credit societies will be allowed to charge a fee.

Maltese banks will exchange Maltese lira banknotes and coins at the irrevocably fixed conversion rate of €1 = MTL 0.429300 until 31 March 2008. This service will be free of charge for bank customers. Non-customers will be able to change a maximum amount of MTL 250 per person.

Thereafter, it will be possible, at the Central Bank of Cyprus, to exchange Cyprus pound banknotes and coins until 31 December 2017 and 31 December 2009 respectively, while in Malta it will be possible, at the Central Bank of Malta, to exchange Maltese lira banknotes and coins until 31 January 2018 and 1 February 2010 respectively.

Dual display of prices

In Cyprus, the dual display of prices became mandatory on 1 September 2007 and will last until 30 September 2008, i.e. a total period of 13 months.

In Malta, businesses were invited to display prices in both currencies on a voluntary basis from January 2007. Once the irrevocably fixed conversion rate was established on 10 July 2007, it became obligatory for all businesses to display prices in both euro and Maltese lira.

The dual display of prices will last until 30 June 2008. Businesses in Malta will then be given three months, i.e. until 30 September 2008, to make the transition to displaying prices in euro only.