Cypriot President Nicos Anastasiades has told the New York Times that the island has already left the European Union's common currency bloc:
Actually, we are already out of the euro zone.
Since the introduction of capital controls in March, Cyprus has effectively been using a second-class euro. Despite promises that the controls would only be in place for a matter of weeks, months on, there's no sign of their removal.
Jon Danielsson, director of the ESRC-funded Systemic Risk Centre at the London School of Economics, says that capital controls are rarely temporary:
Another European country was forced to implement “temporary” capital controls during its crisis – Iceland. Authorities said they would last a few weeks, or a month or two at worst. They were thought necessary because foreigners and wealthy Icelanders had lost faith in the economy and wanted to take their money out. While these people were considered misguided, their exit would have disastrous consequences. But five years on, controls are still in place and are getting more and more restrictive.