We've physically checked at two border crossings. No additional orders to enforce cash controls yet. Existing €10k limit.— Faisal Islam (@faisalislam) March 25, 2013
Would you want to be the bank manager in Cyprus to tell Russian client 1) just lost30% of money 2) not allowed to touch the rest!— Joel Hills (@joelhillssky) March 25, 2013
Rabobank's Richard McGuire has suggested that the crisis in Cyprus will see capital flows out of the country slow to a trickle:
It is distinctly possible that confidence in the banking sector will not be restored by its imminent restructuring. This, in turn, raises the prospect of a run on the country’s banks as soon as they are allowed to re-open – although capital controls will likely see this a somewhat slow moving car crash. Nevertheless, this loss of confidence sees some very discernible possibility a further banking sector bailout might be required. The second reason is related but more economic in nature. This concerns the importance of the financial sector for the Cypriot economy. Even if capital controls are successful in stemming any possible outflow of funds from the banks (and, to the extent these controls are successful, the country at large) they will be powerless to affect the likely dwindling inflows.
But there is some suggestion that capital controls may not be enough to stop capital leaving the island:
Is it silly to think that a banking system full of money launderers will be especially good at avoiding capital controls?— tylercowen (@tylercowen) March 25, 2013
How long before a black market in $ exchange springs up in Cyprus? I give it days, at most.— James Mackintosh (@jmackin2) March 25, 2013