Cyprus reopens banks, under strict restrictions
Security is going to be extremely tight in Cyprus today as banks are preparing to reopen today for the first time in nearly two weeks. The Central Bank of Cyprus’s capital controls will include a 300 Euro daily limit on withdrawal, banning of cashing checks and restrictions on transferrals to accounts outside Cyprus, unless they can confirm it is for imports. Authorities say that strict rules imposed to prevent a bank run will be short-term, but economists say they will be tough to lift as long as the economy is in crisis.
Meanwhile, official data shows that Britain’s services sector rose in January at its fastest pace in five months, potentially easing concerns that the economy is back in recession. The Office for National Statistics said service output rose 0.3 per cent in January from December its best performance since August.
On the FX Markets, the Euro moved to fresh lows against GBP trading upwards of 1.1800. EUR-USD fell below 1.2800 level for the first time since November. GBP-USD is down a little from the 1.5200 range, now trading around 1.5100.