A JOURNEY THROUGH THE RECENT HISTORY OF CYPRIOT CURRENCY
THE CYPRUS POUND WAS INTRODUCED BY THE BRITISH COLONAL AUTHORITIES IN 1878
A LIRA OR A POUND?
HUMBLE BEGINNINGS
The history of the Cyprus Pound, also known as the ‘Cypriot Lira’, holds a significant place in the economic and cultural history of the island and is a testament to the cultural and economic journey of Cyprus during recent years. From its humble beginnings in 1878 to its eventual replacement by the Euro in 2008, it tells the fascinating story of the economic development and the integration of Cyprus into today’s global financial system. The currency has also played a significant role in the island’s cultural development by directly reflecting the island’s economic and social dynamics, and it is true to say that many Cypriots still remember the era of the Cypriot Pound with great nostalgia. Some recall a time when the local currency represented both a sense of national identity as well as economic stability, and many view the currency as quite essentially Cypriot, even though it was originally introduced to the island by the British colonial administration. The currency, whether viewed through a lens of nostalgia or a lens of integration, still serves as a poignant reminder of the island’s journey through a globalised economic world.
A CYPRIOT CURRENCY
TRACING BACK CENTURIES
The roots of Cypriot currency trace back centuries, when Cyprus was under the control of various larger empires and civilisations. The Phoenicians, Egyptians, Romans, and Byzantines all used early forms of currency, but it was not until the British colonial period in the late 19th century that the concept of a standardised currency emerged. In 1879, Cyprus was not officially a British Crown Colony, but the British still introduced an unofficial version of the Cyprus Pound that bared the British Monarch’s head. This new Cypriot currency was pegged to the British Pound Sterling at a fixed exchange rate and the new currency consisted of banknotes and coins minted by the British Royal Mint. The Cypriot Pound eventually became the official currency of Cyprus in 1925 when the island was formally recognised as a British Crown Colony. A revised version of the Cyprus pound became the island’s main currency after the island gained its independence in 1960.
A NEW REUBLIC
Cyprus became a new Republic when it gaining independence in 1960, effectively ending British colonial rule on the island. As part of its new sovereignty, Cyprus created the Central Bank of Cyprus in 1963. The new financial institution took over the responsibility of issuing currency on the island and introduced a series of new banknotes and coins. They wanted these new banknotes to not only serve as a means of monetary exchange but also to represent Cypriot culture, history, and archaeology. The new banknotes that consisted of denominations of 1, 5, 10 and 20 pounds, went on to celebrate the island’s traditions, landmarks, and mythological significance, whilst highlighted the new island nation’s unique identity. The British Monarch’s head was replaced by some unique designs and new figureheads that reflected the island’s direct heritage, further establishing the Cypriot Pound as a symbol of national pride. The new revamped currency, whilst highlighting the rich cultural heritage during the island’s early days of independence, helped put the Cypriot economy on the map in the latter part of the 20th century. The Cypriot economy experienced significant growth throughout the 1970’s and 1980’s, and this was mainly driven by sectors such as tourism, shipping, and a whole host of financial services that included Cyprus becoming a very attractive offshore base. All of this resulted in the value and stability of the Cypriot Pound, allowing the currency to become an important medium of exchange both domestically and internationally.
A SYMBOL OF NATIONAL PRIDE
Cyprus became a new Republic when it gaining independence in 1960, effectively ending British colonial rule on the island. As part of its new sovereignty, Cyprus created the Central Bank of Cyprus in 1963. The new financial institution took over the responsibility of issuing currency on the island and introduced a series of new banknotes and coins. They wanted these new banknotes to not only serve as a means of monetary exchange but also to represent Cypriot culture, history, and archaeology, and the new banknotes went on to celebrate the island’s traditions, landmarks, and mythological significance. The new banknotes consisted of denominations of 1, 5, 10 and 20 pounds, and they highlighted the new island nation’s unique identity by removing the British Monarch’s head and instead featuring unique designs and figures that reflected the island’s direct heritage.
THE END OF THE CYPRIOT LIRA
In 2004, Cyprus joined the European Union, signalling a new chapter in the island’s economic history. As part of the accession process, Cyprus committed to the adoption of the Euro as its official currency, and on January 1st, 2008, the Euro officially replaced the Cyprus pound as the island’s official currency. Although opinions among economists differ regarding the impact of this currency conversion, most agree that the transition was not as smooth as many predicted. The Cypriot pound was pegged with a fixed exchange rate against the Euro and this immediately raised inflation on the island pushing up prices at an alarming rate. This along with other major European economic factors eventually set in motion a tumultuous economic crash that Cyprus is still recovering from to this very day.
I thought that the conversion of the pound to the euro was a beneficial measure for Cypriots that then allowed the economy to prosper with the construction of new homes roadways abs various upgrades throughout the country
This conversion process allowed the growth of the economy aside from some adverse activities