Cypriot EUR Price Parity

Tyler Durden's picture

As we noted earlier, a Cypriot Euro is implictly worth less than a non-Cypriot Euro thanks to the capital controls being put in place. It appears the exact relative worth, based on prices of restaurants, drinks, food, transportation, utilities, and rent that a Cypriot Euro is worth 91% of a German Euro. But under the surface, the cost of living is notably higher (in common currency units).

You would need around EUR2,960.71 in Nicosia to maintain the same standard of life that you can have with EUR2,700.00 in Berlin (assuming you rent in both cities).

 

 

 

 

Source: Numbeo

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ronaldawg's picture

You forgot the price of Hookers and more importantly, LIQUOR.

SilverDoctors's picture

Tyler, FYI...Depositor haircuts just jumped to this side of the pond.  Buried in Canada's 2013 budget is a provision for depositor haircut bail-ins for systemically important banks!

Looks like DieselBOOM was talking about the entire western banking system when he slipped and said Cyprus was a template...

http://www.silverdoctors.com/canada-includes-bail-in-provision-for-syste...

 

cifo's picture

water (330ml) is 1.50 in Berlin (3 times cheaper than in Nicosia), and the 1.5l bottle is 0.5 in Berlin. WTF?

Richard Chesler's picture

All rEUtards are equal, but some rEUtards are more equal than others.

Dr.'s picture

On a general note .. who would import a 0.33 L beer to Germany when the 0.5 L version is better and less pricy? GS?

thisandthat's picture

That would be at a restaurant vs retail market.

Anyway, there's so many local variables that simply aren't easily (or at all) convertible, to take into account, that stats like these end up being nothing more than just (flawed) marketing tools. I could go on on why many of these "comparisons" wouldn't apply to Portugal for instance, even with conversion rates, etc. - pretty sure same happens between any two other countries/cities, even within same country.

hedgeless_horseman's picture

 

 

I'd like to be the first to point out that Berlin is a shithole, and the other town, whatevewr it is called, is on an island in The Med.

LawsofPhysics's picture

Indeed.  In addition, what are the black market prices?  these "official" prices are irrelevant.

hedgeless_horseman's picture

 

 

You would need around EUR2,960.71 in Nicosia to maintain the same standard of life that you can have with EUR2,700.00 in Berlin

lol.  Are you serious?  Let's be frank, there is not enough money in the world to create the same standard of life in Berlin that the Cypriots enjoy in Nicosia.

Berlin...

 

Nicosia...

 

Standards of living are not found on an Excel spreadsheet.

flacon's picture

That last photo is absolutely NOT of Nicosia, or of Cyprus. Nicosia is land-locked. 

That is not to say that I don't get your point, but please use a photo from Cyprus. 

Aphrodiet's Rock

http://www.bahighlife.com/Media/images/HeroCyprus-77637eba-441e-42a5-a41...

 

hedgeless_horseman's picture

 

 

Really?  Where is it?  It isn't Germany, that much I am certain.

This is what a German (temporarily) beach looks like crowded with foreign visitors...

 

 

Scalaris's picture

 

@hh

I can attest to the fact that the beach photo is most definately not Nicosia, because for one I live right in the middle of the city, and mainly because Google says so. 

That said, it certainly isn't completely impossible for some beaches to be found in Nicosia, and if one wishes to visit the beach from here, "travelling" time is around 45 minutes.

Your point is still valid though.

LawsofPhysics's picture

Since you are an insider, what might the good people of Cyprus be interested in purchasing, once they liberate their physical Euros from the banks.  Curious folks with sailing vessels, that haven't seen much action lately, want to know.  Best,  LoP.

Scalaris's picture

Judging by the recent occurrences and providing that one is still by some miracle employed and enjoys some semblance of personal freedom in the form of exchangable medium, as meagre as it might be, and after he manages to somewhat cover his pressing obligations - Liquor, cheap as well as plenty, is my opinion.

ronaldawg's picture

+1 YES - that's what I said.

 

thisandthat's picture

The local pharmacy is always a trusty last-resource go-to place for the purveyance of cost-effective alcoholic supplies.

A blast from the (school days) past (not classes, though - those weren't that interesting...):

Ethylic alcohol; water (50/50); orange juice (a couple), real preferably; sugar to measure. Shake (don't stir), and voilà: instant vodka-orange, best price/quality anywhere in the world. The name is Cadingolo, (Angolan) Cadingolo. ;)

Your basic liquor needs should now be fulfilled, courtesy of the good folks from the musseques (shanty towns) of Luanda.

Dr.'s picture

Re:HedgeHorse.. I recon this picture was taken in France ;)

css1971's picture

Gas streetlamps.

Yes... Really...

css1971's picture

To be fair, Berliners do try to bring the med to the city. It isn't entirely successful.

http://www.tip-berlin.de/kultur-und-freizeit/strandbars-berlin

 

ZeroPower's picture

Great point. Also, Berlin is ugly and cold as a city, not to mention food and everything is cheap compared to anywhere else in Western EU (even other German cities).

 

Jena's picture

Speedos. Don't forget the Speedos, CD.

cifo's picture

Relax, it's just money.

NoWayJose's picture

Those are pre-Russian bailout figures.  Now that the Cypriot government has chased the Russians out, and killed its own banking industry, the prices will fall as Cyprus enters its depression.

fasTTcar's picture

It is actually not worth less.

It just means that there is a 10% premium for physical cash in Cyprus over digits.

Black Markets's picture

This infograph is bullshit.

There is no imported beer in Berlin.

r50fHBWjzxE2's picture

Heineken, Carlsberg, Foster's, Tuborg you name it

css1971's picture

Belhaven... I want a pint of Belhaven.

 

Black Markets's picture

None of those are beer. You fuckwit.

ebworthen's picture

What are you talkin' about?

The Germans can't get enough of our Bud Light and Michelob Ultra.

It's almost as popular as Shasta sparkling water!

Haager's picture

Of course there's imported beer: Paulaner, Weihenstephan...

I refuse to call Heineken, Carlsberg or Tuborg beer (ok, Tuborg comes quite close)

NoWayJose's picture

Uhhhh, let's see -- winter in chilly Berlin versus winter in sun drenched Cyprus....  Oh, they must be equal too...

Unprepared's picture

Flies in the face of one of the main tenants and justification of creating a common currency union: productivity-price differential between core and peripheric Europe will be filled over time to bring standards of living closer. A win-win situation.

Epic Fail

ebworthen's picture

So I saw some footage of the security guards ferrying cash to and guarding the Cyprus banks; all carrying 30 shot magazine assault rifles and street-sweeper circular drum shotguns.

Aren't these the weapons the U.S.S.A. government doesn't want the average citizen to have?

Hmmm....

German quality Journalism's picture

Have you also seen the trucks bringing the money? We are talking normal european semis and the only guard I see had another magazine attached to his G36. German link but wont matter for looking at pictures http://www.spiegel.de/fotostrecke/zypern-bereitet-die-oeffnung-der-banke...

r50fHBWjzxE2's picture

I think Berlin is among the cheapest cities in Germany...
...if not the cheapest.

Brits go there for stag nights. Cheap alcohol, brothels and prostitutes.. .
.. .east Europe just around the corner.

Compare Nicosia with Munich or Hamburg and you know what I mean.

Cheers

McMolotov's picture

Cheap alcohol, brothels and prostitutes...

Ich bin ein Berliner!

css1971's picture

That doesn't mean what you think it means.

McMolotov's picture

It doesn't mean "I am a jelly donut?"

mammoth mo's picture

And yet the dow gets closer to green.  Now down 24

bingo was his name's picture

Isn't this the same way in the states.  If compare the costs in say New York or California vs Kansas or North Carolina I would assume it be a similar. 

Nussi34's picture

Berlin is so much cheaper than decent places in germany, because it is a shithole. In addirion there are no jobs, it has no real airport and too many annoying politicians!

Frankfurt & Munich are the places to be, but twice as expensive!

InconvenientCounterParty's picture

The two tiered currency is the beginning of the endgame.

ebworthen's picture

Agreed.

What do people not get about this?  Analyst's on the boob tube saying Cyprus is small, won't affect the Euro.

Did they miss the Euro not really being the Euro, or the deposit theft and capital controls, and the insolvent Spanish and Italian banks, and Greece not being fixed, and the 25%-50% youth unemployment?

BTW - just saw Fonzi (Henry Winkler) pushing reverse mortgages on the T.V., so the U.S. is just fine too, right?

Bobportlandor's picture

Two Tiered you mean multi tiered. Go down to chart Printer identification codes

http://en.wikipedia.org/wiki/Euro_banknotes

And this is what the exchange rate was go to Preceding national currencies of the Eurozone

http://en.wikipedia.org/wiki/Euro

So after running the #s today what would the exchange rate need to be?