Note: This currency has been replaced by the Euro.
Overview
The Cyprus Pound (CYP) was the official currency of Cyprus. It is also known as the Lira. In 2007 the Euro replaced the Cyprus Pound as the official currency. In 2008, a fixed exchange rate was established between the Euro and the Cyprus Pound.
Economy
The economy is controlled by the Republic of Cyprus. It is rated by the World Bank as a high-income economy.
The Cyprus economy relies on tourism which accounts for 80% of the GDP.
The unemployment rate is 7.5%.
The main industries are mining, agriculture, and tourism.
The trading industry is vital for the Cyprus economy, because they are not self-sufficient in food and have limited natural resources.
A free-market exchange has been instituted that permits residents to have a foreign currency bank account.
Some of Cyprus’ import products are raw materials, fuels, transport equipment, and heavy machinery.
The main export crops are citrus and potatoes.
History
The Pound was introduced to Cyprus in 1879 by the British, and considered equivalent to the British Pound Sterling or 180 Turkish piastres. The pound was subdivided into shillings.
In 1955, the Pound was decimalized into 1,000 mils. The 5 mil was equivalent to a piastre and the 50 mil was equivalent to the shilling.
In 1983, the subdivision was changed to 100 cents = 1 Pound. 5 Mils was the smallest denomination, but it has been abolished and is no longer legal.
In 2008, the Cyprus Pound was replaced by the Euro. It was entered as a exchange rate mechanism 2 in 2005, was submitted in 2007, and was accepted by the European Commission. A permanent exchange rate was established of 1 Euro = 0.585274 Cyprus Pounds.
