Chapter

IRELAND

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2000
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Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: February 15, 1961.
Exchange Arrangement
CurrencyAs of January 1, 1999, the currency of Ireland is the euro. In cash transactions, however, the legal tender remains the Irish pound until 2002, when euro banknotes and coins will be issued.
Exchange rate structureUnitary.
Classification
Exchange arrangement with no separate legal tenderIreland participates in a currency union (EMU) comprising 11 members of the EU: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. Internal conversion rates in respect to the national currencies of EMU participants were fixed to the euro on January 1, 1999, whereas the external exchange rate of the euro is market determined. The conversion rate between the euro and the Irish pound was set at IR£0.787564 per €1. The ECB has the right to intervene to smooth out fluctuations in external exchange rates.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketBanks are free to provide forward exchange facilities.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payment arrangementsNo.
Administration of controlNo.
International security restrictions
In accordance with Executive Board Decision No. 144-(52/51)Yes.
In accordance with UN sanctionsRestrictions on financial transfers with Angola, Iraq, and the Federal Republic of Yugoslavia (Serbia/Montenegro) are applied in accordance with relevant UN Security Council resolutions and EU regulations.
Payment arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesNo.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsThese are accounts blocked in accordance with UN sanctions.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsNo.
Import licenses and other nontariff measures
Negative listFor reasons of national policy, imports of certain goods (e.g., specified drugs, explosives, and firearms and ammunition) are prohibited without special licenses.
Licenses with quotasImports of certain goods (including textiles, steel, footwear, and ceramic products) originating in certain non-EU countries are subject to either quantitative restrictions or surveillance measures. Imports from non-EU countries of products covered by the CAP are subject to a system of access quotas.
Import taxes and/or tariffsThe EU system of customs duties applies to imports.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsNo.
Export licensesExports of controlled military and dual-use goods to both EU and non-EU countries may require export licenses.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital and money market instrumentsNo.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsNo.
Controls on direct investment
Inward direct investmentInvestment by foreign-controlled enterprises does not require authorization, except for a very limited number of sectors that are subject to special conditions.
Controls on liquidation of direct investmentNo.
Controls on real estate transactions
Purchase locally by nonresidentsPersons, individuals, and companies whose principal place of residence/registered office is outside the territory of the EU/EEA must apply to the Land Commission for permission to purchase land. Such permission is rarely withheld.
Controls on personal capital movementsNo.
Provisions specific to commercial banks and other credit institutionsNo.
Provisions specific to institutional investorsNo.
Other controls imposed by securities lawsNo.
Changes During 1999
Exchange arrangementJanuary 1. The currency of Ireland became the euro. The conversion rate between the euro and the Irish pound was set irrevocably at IR£0.787564 per €1.

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