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Banks will, I'm sure, still exchange your CY£ for Euros.
You can travel 'up North'. A couple of days will not be a problem.
Public transport in Cyprus is almost an oxymoron. http://www.cyprus.com/cyprus-general-info-transportation-bus-services-intercity.php
No idea about hitchiking. The only problem is you will possibly get taken to an aunt's/uncle's/cousin's etc house to be given the 'friendly' hard sell of lace/wine/handmade jewelry etc.
Mark
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