The Governor of the Central Bank of Cyprus Constantinos Herodotou said that financial literacy is a key element for a well-functioning economic system and thus a minimum requirement for sustainable economic growth.
Herodotou recently spoke at a Cyprus Economic Society seminar titled ‘The Significance of being Financially Literate and National Strategies for achieving it’.
Herodotou said that as more individuals behave in a more fiscally prudent manner and comprehend the workings of the financial system, including how to use its services and products appropriately and efficiently, the more society and the country’s economic system can benefit.
Fiscal Council Chairman Michalis Persianis said that rapid adaptation must be at the core of our collective response during a speech on Friday at Limassol Economic Forum.
Speaking on the effects of the pandemic, Persianis said that throughout the pandemic financial markets have not only seen a boom but have also shown extensive distortions, with wide displacements of investment away from productive destinations.
Regarding Cyprus, Persianis said that double-digit inflation has been observed in two sectors, transportation and housing, with the two sectors likely to soon affect other parts of the economy.
“We are seeing unprecedented resignation rates, especially in lower-income jobs. We are noting lifestyle spending on the rise at the expense of both real economy investment and savings, with Central Banks picking the slack to keep financial markets loosened,” Persianis said.
“We are seeing relative price levels between goods and services shift to new patterns, with a significant impact on demand and profits,” he added.
The Cyprus Stock Exchange (CSE) ended Friday, October 22, with profits.
The main Cyprus Stock Market Index was at 66.56 points by 12:28 during the day, reflecting an increase of 0.41 per cent over the previous day.
The FTSE / CySE 20 Index was at 39.15 points, representing a rise of 0.44 per cent. The total value of transactions came up to €20,704.
In terms of sub-indexes, the main and alternative indexes rose by 0.29 per cent and 0.66 per cent respectively, while the hotel and investment firm indexes remained stable.
The biggest investment interest was attracted by Vassiliko Cement Works (no change), Logicom (+1.94 per cent), Louis (no change), and Atlantic Insurance (no change).