Cyprus joined the euro-zone on New Years day becoming the 14th European Union member state to adopt the common currency, with most of the conversion going well despite minor difficulties in some shops and smaller bank branches running out of new notes and coins.

The introduction of the euro was a landmark in the history of Cyprus, with feelings muted as some people saw benefits of joining the eurozone, while others were sceptical that they had lost the power of a strong Cyprus pound, just as the French gave up the franc and Germans abandoned the mark.

The Central Bank of Cyprus too has relinquished its exchange and interest rate setting authority, decisions that will now be taken jointly at the European Central Bank in Frankfurt.

Finance Minister Michalis Sarris said at a public celebration moments after midnight that joining the eurozone was an indication of the island’s healthy economy and that “it was a tough ride getting here”. He also congratulated his Maltese counterpart and read out a letter sent to Malta’s president from Tassos Papadopoulos, as the smaller Mediterranean island state also adopted the euro an hour after Cyprus, raising the eurozone members to 15.

Sarris said later on Tuesday that the whole operation went smoothly and that most of the Cyprus pound notes and coins will have been collected by mid-January, with some people holding on to samples of bygone days as memorabilia.

Few cases were reported of kiosk owners and foreign staff at some bakeries not coping with the new currency and mixed change, or running out of euros and giving change in CYP coins. Pharmacies and fast-food outlets working on Tuesday seemed to have adjusted well with their cash tellers showing both currencies in receipt as well as change.

But some people also had some simple questions that remained unanswered, possibly due to the delay in the information media campaign and the absence of practical examples for people to identify with.

When Cyprus applied to join the Exchange Rate Mechanism (ERM2) and subsequently headed towards adopting the European single currency as its own, the conspiracy theories of this generally pessimistic nation took a quantum leap with everything that went wrong being blamed on the euro in the run up to the January 1, 2008 date of adoption.

Spiraling fuel prices, a drop in tourism, rising property prices and more expensive tomatoes in the traditional salad were all blamed on the anticipated use of the euro, a negative attitude reflected in all recent Eurobarometer surveys that showed low levels of confidence in the euro and the Eurozone club.

Source: Financial Mirror