Although the main reason for the current spike in the prices of the digital currency is that there is a new government in Cyprus and that the Cyprus central bank has stopped accepting the transfer of cash into and out of Cyprus, it is interesting to note that the currency prices are not only increasing because of this. The other reasons which have contributed to this increase are the following.
The first reason for the current increase in the price of the Cyprus currency is that the new government in Cyprus has announced that it will take action against the use of electronic money. This includes the closure of the ATM’s which were used to deposit money in the banks, and the implementation of controls on the use of electronic transfers.
This measure of the new government in Cyprus is an important one because there have been many cases of criminals using fake money in order to carry out a number of crimes. With the introduction of new controls on electronic transfers and the closing of the ATM’s, these criminals can no longer access their money and they will have to find another way of carrying out their criminal activities. As a result the price of the Cyprus currency is expected to fall as the criminals find other methods of carrying out their illegal activities.
Another reason for the price of the Cyprus currency being increased is that the country is experiencing financial problems. Many of the Cyprus banks are now trying to obtain loans from international lenders in order to avoid bankruptcy. As a result the price of the currency is expected to fall as a result of these external creditors.
Finally, it is important to note that Cyprus is still experiencing high inflation rate. Due to the lack of any new controls on electronic transfers the price of the Cyprus currency is expected to rise because the cost of the imported goods has increased and as a result the cost of the imported goods is also expected to increase.
All in all, the above mentioned factors are all factors which are likely to affect the price of the Cyprus currency in the near future. Given the recent news in Cyprus, a combination of these factors should continue to increase the price of the Cyprus currency until there is a major change in the Cyprus government’s policies.