Cyprus pound and Maltese lira locked to euro

The exchange rates of the euro zone's two newest members, Cyprus and Malta were locked against the euro on 10 July as European finance ministers formally approved the addition of the two countries to the single currency zone.

Finance ministers of the 27 country members that make up the European Union pegged the exchange rates of the Cypriot pound and the Maltese lira to the euro at a meeting in Brussels. The two Mediterranean island states have six months to prepare for entry to the single currency bloc on 1 January 2008.

The rates were locked as follows:
EUR1.00 = CYP0.585274
EUR1.00 = MTL0.4293
Or
CYP1.00 = EUR1.7086
MTL1.00 = EUR2.3294

Cyprus and Malta's addition to the 13-member euro zone will take the membership of the single currency area to 15 states.

The locking of the rate means that there is no more exchange concerns regarding a possible devaluation, and all businesses will be able to start displaying dual pricing in Cyprus pounds and euros at the central rate of 0.585274 or 1.7086 euros per Cyprus pound.

At CosmoServe we have already commenced the procedure for replacing the CYP with the EUR in all agreements, invoices and other documents. We expect that this will facilitate our relationship with our clients even further.