There is a debate among market observers over whether the capital controls in Cyprus mean that there are, in effect, two euros now. It is argued by some investment banks and some economists that the capital controls create a Cypriot euro that is different from the euro elsewhere in the monetary union. While we understand the the argument, we continue to demur. We do not think it has to be a theoretical debate. There are indeed some international transactions taking place. For example, companies are allowed to make payments for imported goods, provided documentation is provided to authorities. Thus far, and we ... (full story)