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Great news if you're a Brit planning to buy a property in Cyprus this year! It's an excellent time to do so from a foreign exchange point of view, because the pound has hit its strongest versus the euro since September 5th 2012, or 22 months, at a whopping 1.2676.

What this means for you is that, when you exchange currencies to buy a Cyprus property, you'll receive more euros. In fact, were you to to exchange £125,000, you'd receive €16,300 more than if you'd done so in March 2013, when you the pound was at just 1.1371.

Why has sterling climbed? Well, it's because the UK economy is growing +3.2% a year at the moment, more than any other industrialised country. So as the UK shakes off the effects of the financial crisis at last, sterling is regaining all its old ground against the euro!

Will the pound continue to rise, further cutting the cost of Cyprus property? It might, because as the UK economy recovers, the Bank of England looks set to become the first major central bank since the financial crisis to lift interest rates, lifting the pound too.

By Peter Lavelle at foreign exchange broker Pure FX