Cyprus: Devaluation By The Back Door

Something struck me about Cyprus earlier today, once I had stopped ranting and fulminating about the universal Government tendency to steal other people's money when its own runs out.

It's devaluation by the back door, in a sense. Deprived of its own currency, how else can the island (which clearly should never have been in the European Single Currency experiment) impoverish its inhabitants to the required extent? If you can't drive down your wages, steal from what they have in the bank.

What's next? A run on all banks across Europe? A return to stashing under the mattress what little spare cash we have left after our Governments have helped themselves? 

Cui bono out of all this? A pound to a penny it's the banks...