Turkish Cypriots considering switch from lira to euro

Main opposition deputy Fikri Toros in the breakaway Turkish Republic of Northern Cyprus (TRNC) proposes that the Turkish-controlled northern third of the Mediterranean island join the EU-member southern part and adopt the euro as its currency, leaving behind the lira.

Toros, a deputy from the Republican Turkish Party (CTP), said the switch would be necessary “to uphold purchasing power in the face of the Turkish lira’s interest rate policy and rising inflation”, Turkish Cypriot Yeni Düzen daily reported.

“I would like to remind all one more time that the switch to euro-based accounting, income and financial assets should be discussed in a rational manner and go into force without much delay,” Toros said.

The TRNC cannot achieve stability or predictability to achieve its sustainable macroeconomic goals “as long as we are tied to a currency that has no monetary policy tools whatsoever, that lacks discipline, and that constantly fluctuates”, Toros said.

Cyprus has been divided since 1974, following a coup backed by Greece’s military junta and Turkey’s subsequent invasion of the northern third, where the island’s Turkish population was concentrated.

While the Republic of Cyprus, or the Southern Cyprus Greek Administration as Turkey and TRNC calls it, is internationally recognised and a member of the European Union, the TRNC is only recognised by Turkey and thus highly dependent on Ankara.

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