Excellent advice from dzug. Only take a few Cyprus pounds so that you'll have a bit of ready cash when you first arrive, then use an ATM (Cyprus seems to have more banks per head of the poulation than anywhere else I know!) and you'll get a much better rate than anywhere else. Better still, try to pay with plastic wherever you can and you'll get an even better rate; not always easy to do in Cyprus, though, as much business there is still strictly cash-based.
Norman, we might have passed in the streets of Paphos and never known it - we have a house up in the Troodos, in Koilani, but we have a lot of friends in and around Paphos as we used to rent in Peyia. Off to Cyprus next weekend, in fact.....