Euro Adoption To Mean Big Changes For Cyprus And Malta

by Philip Morton, Investors Offshore.com

12 November 2007

Lloyds TSB Offshore Fund Managers has suggested that the adoption of the euro in 2008 is likely to mean big changes for residents of Cyprus and Malta, and for those who are considering working or retiring there.

The islands, which are popular with British expats, face changes beyond how goods are priced in the shops. Residents and those considering moving there may have to switch their savings into euros, to avoid exchange rate risks from fluctuations between currency of income and currency of expenditure.

Bron Lysiak of Lloyds TSB Offshore Fund Managers Limited commented last week that:

"It's a huge change for everyone in Malta and Cyprus. One now has to think in a completely different currency and it's perhaps the most fundamental economic change that can affect a country. Those who are using investment to derive an income – such as retired people or those thinking of retiring to the islands - must be careful of a possible currency risk if they do not receive their income in euros."

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