Crisis in Cyprus sees capital flee the island

German newspaper Handelsblatt reports that capital flight from Cyprus in March has totalled approximately €1bn. That number is smaller than expected, but is troublingly high for the small island economy. Cypriots are likely to face limited access to credit and their main industry (offshore banking) has been eviscerated.

Capital flight as a metric remains more useful than the strength of the euro against currencies outside of the Eurozone. Much of the panic in the currency union has seen money move around within it, rather than seeing confidence in the area collapse entirely.