Governor of Bank of Cyprus to Step Down, as Resignation Letter Confirmed

Panicos Demetriades will be stepping down from his position as Governor of the Central Bank of Cyprus, as his letter of resignation has been accepted by the country's presidential office, Forex Magnates reports.

A spokesperson at the Central bank of Cyprus told Forex Magnates' reporters regarding the news, "We have not issued a statement, we are expecting the Governor to issue a statement himself."

The presidential palace confirmed the letter of resignation, via Brussels, and issued the following statement today:

The Governor of the Central Bank of Cyprus, Mr Panicos Demetriades, today submitted his resignation to the President of the Republic, Mr Nicos Anastasiades, and the resignation was accepted. According to Mr Demetriades’ contract, a month’s notice is required, and for that reason his resignation will be effective as of April 10, 2014. During this period, Mr Demetriades will deal with the pending issues before him and will brief his successor.

Mr Demetriades’ letter of resignation was handed today, in Brussels, to the Minister of Finance, Mr Harris Georgiades, in the presence of a European Central Bank representative.

The President of the Republic thanked Mr Demetriades for his contribution in the great effort that has been undertaken over the past year to rescue the country from bankruptcy and to stabilize the financial sector.

Mr. Demetriades has voiced concerns over a loss of independence that the central bank faced to a degree when Cyprus' bail-in caused a stir both in Europe, as well as for the country's residents to a much larger degree, around the time of the financial crisis that occurred in Cyprus to its banking industry.

With the effective date of his resignation being April 10th, 2014, the Governor having originally begun his position in May 2012, and thus will be just two years shy of having held the position.

According to Famagusta Gazette, a local publication in Cyprus, quoting a Reuters article from October 2013, Governor Demetriades had told the Financial Times (FT) that his challenging relationship with the country's President Nicos Anastasiades was “not a sustainable state of affairs,” yet insisted he wouldn't resign. “I don’t think that would be the right thing to do,” he said, as per the above mentioned quote to FT.

Cyprus remains an important jurisdiction for financial institutions including foreign Exchange and binary options brokers, as it is strategically located between Europe, the Middle East, Asia and Africa.

Forex Magnates will be co-organizing, along with Conversion Pros, the IFX EXPO Cyprus, this coming May, as international and domestic companies will meet in Cyprus at one of the largest B2B events for the foreign exchange and online brokerage industry.

In addition to the mostly Hellenic presence throughout the island that has persisted for over 3,000 years, despite numerous occupations, foreign rule and invasions, for the Cypriots, the nearly 40% Turkish side of the island towards the north creates a connection to Turkey which is also a place of interest for Foreign Exchange companies.

Not coincidentally, with regards to the interest in Turkey, Forex Magnates is hosting an event in Turkey in the coming weeks, as this region is of major interest to both domestic and international companies, and further information is available on the events section of the Forex Magnates' homepage.

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