In the immediate aftermath of the banking crisis of March 2013 the Cyprus government imposed temporary restrictions on currency transfers in order to prevent a mass withdrawal of deposits then in the banking system and a rapid outflow of funds. The controls, which affected only deposits in existence at the time of the banking crisis, and not funds subsequently deposited, were gradually relaxed following the recapitalization of the banking sector.
On 3 April 2015 the government announced the abolition of all the remaining restrictions, so that funds are freely transferable in every way, just as they were prior to the imposition of controls.
While the restrictions did not have a practical impact on most international investors, nevertheless their final abolition is a welcome confirmation of the progress that has been made in rehabilitating the banking sector and the real economy of Cyprus.
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