Governor Gabriel Makhlouf of the Central Bank of Ireland emphasized the significance of monitoring the Middle East crisis due to potential global economic repercussions. Speaking to the press in Nicosia today, he noted that while the situation is primarily a human tragedy, its economic implications are of concern to Cyprus, Europe, and the world.

Makhlouf was in Cyprus at the invitation of the Central Bank of Cyprus (CBC) Governor, Constantinos Herodotou. During his visit, he met with Cyprus' Minister of Finance, Makis Keravnos, and other key officials.

Addressing inquiries about the Middle East crisis's impact on the European Central Bank (ECB) monetary policy, Makhlouf stressed that while there will likely be some economic effects, the full scope remains unclear. He urged caution against jumping to conclusions. He reaffirmed that the ECB's primary commitment is to steer inflation back to its target levels.

On the topic of the crisis's potential impact on the Cypriot and Irish banking systems, Makhlouf expressed confidence in the enhanced resilience of both financial systems compared to previous crises. This resilience, he noted, is due to reforms in international regulations and individual efforts within the banking sector.

During his stay, Makhlouf engaged in dialogues about Cyprus's situation, broader Eurozone matters, met business leaders, interacted with university students, and collaborated closely with Governor Herodotou's senior team. Both governors are preparing for the forthcoming European Central Bank (ECB) governing council meeting in Athens.

Cyprus' Finance Minister, Makis Keravnos, highlighted the comprehensive discussions held, which covered geopolitical events, Eurozone economic advancements, and insights into the Cypriot and Irish economies. He shared mutual concerns regarding ongoing geopolitical tensions, especially the situation in Israel, and expressed hopes for solutions beneficial to their nations and the European Union.

Concluding, CBC Governor Herodotou appreciated Makhlouf's visit and emphasized the growing cooperative relationship between the Irish and Cypriot central banks.