Smooth introduction

The European Commission on Thursday hailed the smooth introduction to the euro in both Malta and Cyprus, from AFP:

..After Wednesday's first working day since the currency switch the share of euro banknotes in circulation was already over 50 percent in both Cyprus and Malta, the ECB added in its statement. Malta and Cyprus became the 14th and 15th members of the eurozone on Wednesday after painstaking preparations and coordination between the governments and central banks.

The Commission said that by Tuesday around 40 percent of citizens in both countries had "only or mostly euro cash in their wallets and purses." According to a European Commission survey retailers gave change exclusively in euros in over 90 percent of all cash transactions, although on Monday there had been some shortage of change at retail outlets while banks were closed for the New Year holiday.

On Wednesday 36 percent of Maltese and 28 percent of Cypriots said they had paid for goods using euros, favourable results compared to the 19 percent figure registered when Slovenia adopted the euro a year ago. The smooth transition came despite the start of the post-holiday winter sales..

In both countries the euro has been introduced under a "big bang" system with dual circulation of the old and new currencies for one month. The euro will thus become the sole legal tender as of February 1, 2008, although both national central banks will redeem old banknotes for ten years and coins for two years.

Ratings raised by Moody's