The Cypriot government approved a proposal on Wednesday to join the Euro zone by Jan. 1, 2008.

Government Spokesman Kypros Chrysostomides said, "After thorough discussion and evaluation, the cabinet approved a suggestion to join the euro zone by Jan. 1, 2008."He said that the decision came after the cabinet was informed on the progress of implementing a strategic action plan to introduce the euro in Cyprus, a member of the European Union since 2004.

The spokesman added that the finance minister, together with the governor of the central bank, will meet political party leaders or their representatives to inform them on the action plan to introduce the euro.

In April 2005, the Cyprus pound joined ERM 2, a stabilization mechanism and ante-room to euro adoption. The mechanism anchors the pound against the euro in a 2.25 percent fluctuation margin against an agreed reference rate.

The Cyprus stock exchange plans to introduce the euro in its transactions next year when it has established a common trading platform with the Athens Stock Exchange.

(Xinhua News Agency November 3, 2005)