The Cyprus Pound (CYP) was the money used in Cyprus, a lovely island in the Eastern Mediterranean, until 2008 when it changed to the euro (EUR). 

The pound had a long history and was important for buying things and managing the country’s economy. 

Learning about the Cyprus Pound helps us understand how Cyprus grew and connected with other countries in Europe. Read on to get to know the history behind Cyprus Pounds.

What is Cyprus Pound (CYP)

The Cyprus Pound (CYP) was the official currency of Cyprus before the island adopted the Euro (EUR) on January 1, 2008. 

The currency code for the Cyprus Pound was CYP, and it was subdivided into 100 cents. 

The Central Bank of Cyprus took care of the currency, making sure it worked well for everyone. 

History of Cyprus Pound

The Cyprus Pound, known as CYP, has a rich history that reflects the island’s unique position and changes over time. The currency first emerged in 1879 when Cyprus became a British protectorate. 

At that time, the British introduced the sterling pound as the official currency. This marked the beginning of a significant monetary evolution for Cyprus.

In 1955, Cyprus made an important change by decimalizing its currency. The pound was divided into 1,000 mils, with coins in circulation that included the mil denominations. People colloquially referred to the 5 mil coin as a “piastre,” while the 50 mil coin was known as a “shilling.” 

This system changed again in 1983 when the mils were replaced with cents, leading to a new structure where the Cyprus Pound was divided into 100 cents.

Throughout its history, the Central Bank of Cyprus played a crucial role in managing the currency. 

The bank was established in 1963, shortly after Cyprus gained independence. It oversaw the issuance of coins and banknotes, which included various denominations such as 1, 5, 10, and 20 Pounds for banknotes and 1, 2, 5, 10, 20, and 50 cents for coins.

The transition to the euro began in the early 2000s. Cyprus entered the Exchange Rate Mechanism II on May 2, 2005, and after a rigorous assessment, the country officially adopted the euro on January 1, 2008. 

After the euro was introduced, the Cyprus Pound was phased out as legal tender. The Central Bank of Cyprus allowed a period for exchanging Cyprus Pound banknotes and coins, which ended on December 31, 2017. 

Today, the euro serves as the official currency, marking a significant step in Cyprus’s integration into the European Union.

Structure and Denominations of the Cyprus Pound

The Cyprus Pound was subdivided into smaller units. Initially, it was divided into mils, but in 1983, this changed to cents. 

The available coins included denominations of 1, 2, 5, 10, 20, and 50 cents, while banknotes came in 1, 5, 10, and 20 Pounds. 

This variety made everyday transactions convenient for consumers and businesses.

Fixed Exchange Rate During Euro Adoption

When Cyprus changed its money to the euro, it set a fixed exchange rate to make everything easier. The rate was 1 euro = 0.585274 Cyprus Pounds (CYP). This change took place on January 1, 2008.

Before switching to the euro, Cyprus joined a special group called the Exchange Rate Mechanism II (ERM II) in May 2005. This helped them prepare for using euros. 

The Central Bank of Cyprus carefully managed the switch, making sure that everyone understood how much their Cyprus Pounds were worth in euros.

After the change, people could exchange their Cyprus Pounds for euros until December 31, 2017. This time allowed everyone to easily swap their old money for the new one without any confusion.

Conclusion

The Cyprus Pound served as the official currency until its replacement by the euro in 2008. 

Managed by the Central Bank of Cyprus, it had a fixed exchange rate with the euro, facilitating a smooth transition for users. 

The currency’s structure included cents and various denominations, supporting flexible transactions. 

Despite facing challenges post-euro adoption, Cyprus has also enjoyed the advantages of its membership in the European Union.