Based on the decision of the Council of Ministers, the target date for adopting the euro is 1st of January, 2008, provided that Cyprus, which will be evaluated by the institutional bodies of the European Union (EU) on the basis of the Convergence Report, will fulfill the convergence criteria (known as Maastricht criteria). This date is called E-day in the following text.
E-day (1st January, 2008)
- Withdrawals from bank accounts will be only in euro.
- Automatic Teller Machines (ATMs) will issue only euro.
- All payments (e.g. salaries, pensions and social grants) will be made in euro.
- Prices in shops and commercial enterprises will be expressed in euro. The Cyprus pound equivalent will be also shown for a certain time period. Shops will accept Cyprus pound banknotes and coins for payment until 31.1.2008, but they will give change in euro.
- Banking institutions will exchange Cyprus banknotes and coins for euro, free of charge, at least for the amount of CYP 1.000 for banknotes and CYP 50 for coins, for a period of 6 months from the date of the introduction of the euro, i.e. until 30.6.2008.
- Central Government and Semi-Government Organizations, Government Departments, Local Authorities, Medical Funds and Post Offices will make and accept payment in euro. Cyprus banknotes and coins will also be accepted for payments until 31.1.2008 but any change will be given in euro.

Parallel Circulation period
From the day of the introduction of the euro, and for a period of one month, that is from 1.1.2008 until 31.1.2008, the Cyprus pound will circulate in parallel with euro and will be accepted for cash transactions. This period is referred to as the parallel circulation period. After 31.1.2008, Cyprus banknotes and coins will cease to be legal tender and their acceptance for payments will not be obligatory. However, they will continue to be exchanged for euro at commercial banks for a certain time period which will be decided, as well as at the Central Bank of Cyprus.

Exchange period for the Cyprus pound
The Central Bank of Cyprus will continue to exchange to exchange free of charge Cyprus pound coins for euro for a period of 2 years from the day of the introduction of the euro, that is until 21.12.2009, and banknotes for a period of 10 years, that is until 31.12.2017.

Frontloading of banks and business enterprises
In order to facilitate the public during the changeover period the Central Bank will frontload the banks with the necessary quantities in euro before the 1st of January, 2008. Commercial enterprises, post offices and companies operating vending machines, will be sub-frontloaded with euro through the banking system, before the date of its introduction, in order to be in a position to meet the needs of their customers.