THE EURO changeover has proved to be a success in Cyprus and Malta in the first week of January. The changeover of all cash and non-cash transactions to the euro appears to be going swiftly and without noteworthy problems. After only a few days, the euro had already largely replaced the Cyprus pound and the Maltese lira in people's wallets and purses.

Less than week after adopting the euro, nearly three quarters of all cash payments were made in the new currency in Cyprus, the EU Commission said yesterday.

A statement from the Commission said that on January 5, some 72 per cent of all cash payments were made in euro and that 74 per cent of Cypriots had only or mostly euros in their pockets.

“The adoption of the euro in Cyprus and Malta is proceeding very swiftly. This is testimony to the good preparations beforehand for which all involved in the two countries, starting with their respective governments, must be congratulated,” said Joaquín Almunia, European Commissioner for Economic and Monetary Affairs.

“It is now crucial that both countries continue to implement sound fiscal and budgetary policies so that they can fully benefit from economic and monetary union,” the Commissioner said in a statement yesterday.

The latest survey, the second since euro adoption, found that the ratio of euro cash payments in shops increased quickly during the first week.

Retailers gave change exclusively in euros in virtually all cash transactions where change was given. In Cyprus the figure was up to 97 per cent by last Saturday.

As people appeared to be eager to exchange their national cash holdings into euro and to withdraw euro cash, there were still some queues at banks but the situation seemed to be getting back to normal, the Commission said.

In Cyprus, some 179,000 over-the-counter exchanges and withdrawals were made between January 1-4, involving some €253 million. In Malta, approximately 132 000 over-the-counter withdrawals took place between January 1 and 5, for a total amount of around €88 million. Some 105,000 ATM withdrawals had been made in Cyprus by January 4, and 202,000 in Malta up to and including January 6.

With respect to the conversion of prices into euro, so far only a few incidents of undue price increases have been reported in both countries, said the Commission citing parking fees, cinema tickets and doctors' fees.

“The authorities are investigating all these cases and are asking those responsible to revert to the former prices where necessary,” the Commission said.

“Consumers are encouraged to remain vigilant and to report any cases of unfair pricing to the authorities or consumer associations.”

In Cyprus, Central Bank officials said yesterday that by yesterday around €285 million euros were in circulation and that the Bank had collected up around £120 million.

Source: Cyprus Mail