NEW Central Bank Governor Athanasios Orphanides said yesterday his top priority in his new post would be the smooth introduction of the euro in Cyprus.
Orphanides, a former adviser to the US Federal Reserve, was sworn in yesterday in the presence of his predecessor Christodoulos Christodoulou and Finance Minister Michalis Sarris.
Addressing the special ceremony, Orphanides said the foundations for achieving the Central Bank’s aims were already strong thanks to the work of his predecessor.
Christodoulou led the Bank for the past five years, during which he oversaw extensive changes in the banking system and set the ball rolling for euro zone entry.
Cyprus hopes to join the euro on January 1. A decision will be taken by EU Finance Ministers this month and final approval will be given by the European Council at the end of June.
“Our main aim is to maintain stability in prices,” Orphanides said.
“Monetary policy contributes in the long term to increasing productivity, economic development and generally the island’s welfare.”
Orphanides said the introduction of the euro was an extremely important step for Cyprus and would bring significant economic and political benefits.
“The hard work that awaits all of us is a given,” he said. “The challenges are huge and the administration must be demanding, efficient and effective.”
He also said that the Central Bank’s aims included achieving long-term macroeconomic stability and maintaining a robust banking system.
Christodoulou described his successor as “a gifted man” with qualifications and experience.
He said he was certain that Orphanides would be able, with the help of Central Bank staff, to succeed in the “hard work he is called to perform”.
Both also paid tribute to Sarris, praising the close co-operation the Central Bank has with the Finance Ministry.
Christodoulou said he had mixed feelings about passing on the torch after five years but said he was satisfied that during that time a lot had been achieved that had led to confidence in the stability of the Cyprus pound, the monetary system and the economy.
“There is no choice and no going back for Cyprus from its course to European integration,” he said.
Sarris thanked Christodoulou for his contribution and said he was certain the new Governor would prove to be a more than competent technocrat.
