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MoF study says minimal effects on Cyprus from Brexit

According to a study by the Ministry of Finance, the potential effects on Cyprus from a Brexit are minimal, with the effects being contingent on the sterling to euro rate in the days after the Brexit.

The question remains, however, what trade agreements the EU and the UK would make after a Brexit, and how those might affect the currency rates for the euro and sterling.

In the study it is noted that Cyprus does not maintain important trade exchanges with Britain, with Cypriot exports to the UK, mostly potatoes, amounting to 3% of the total exports of Cyprus, worth €1.7 billion in 2015.

The only sector with significant risk in the case of an undervalued sterling against the euro is the tourism sector, however, since no significant changes in the currency rate is expected, financial consequences are unlikely.

This study is in sharp contrast to a that released by the Cyprus Chamber of Commerce and Industry(KEBE) last week, which predicted significant financial consequences for Cyprus in the case of a Brexit.

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