Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

IRELAND

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of January 31, 2007)

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: February 15, 1961.
Exchange Measures
Restrictions and/or multiple currency practicesNo restrictions as reported in the latest staff report as of December 31, 2006.
International security restrictionsIn accordance with EU regulations and the relevant UN Security Council resolutions, certain restrictions are maintained on the making of payments and transfers for current international transactions with respect to the former government of Iraq, the Democratic Republic of the Congo, Myanmar, certain individuals associated with the previous government of the former Federal Republic of Yugoslavia, Zimbabwe, Liberia, Sudan, Côte d’Ivoire, Uzbekistan, certain persons suspected of involvement in the assassination of former Lebanese Prime Minister Rafik Hariri, and in support of the effective implementation of the mandate of the International Criminal Tribunal for the Former Yugoslavia. Financing related to military activities in Somalia and Lebanon is prohibited. Restrictions also apply on transfers and transactions with respect to the Taliban, the Al-Qaida network, and individuals and organizations associated with terrorism.
In accordance with IMF Executive Board Decision No. 144-(52/51)Yes.
Other security restrictionsYes.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyThe currency of Ireland is the euro.
Exchange rate structureUnitary.
Classification
Independently floatingIreland participates in a currency union with 12 other members of the EMU and has no separate legal tender. Effective January 1, 2007, the exchange arrangement of the EMU countries has been reclassified to the category independently floating from the category exchange arrangement with no separate legal tender. The new classification is based on the behavior of the common currency, whereas the previous classification was based on the lack of a separate legal tender. The new classification thus reflects only a definitional change, and is not based on a judgment that there has been a substantive change in the exchange regime or other policies of the currency union or its members.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketBanks are free to provide forward exchange facilities.
References to legal instruments and hyperlinksn.a.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payments arrangementsNo.
Administration of controlNo.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesNo.
References to legal instruments and hyperlinksn.a.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
References to legal instruments and hyperlinksn.a.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsAccounts may be frozen in accordance with the relevant EU regulations.
References to legal instruments and hyperlinksn.a.
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.
References to legal instruments and hyperlinksn.a.
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.
Without quotasn.a.
With quotasn.a.
Export taxesNo.
References to legal instruments and hyperlinksn.a.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
References to legal instruments and hyperlinksn.a.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksn.a.
Capital Transactions
Controls on capital transactionsControls on capital transactions apply in accordance with EU regulations.
Repatriation requirementsNo.
Controls on capital and money market instrumentsNo.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsNo.
Controls on direct investment
Inward direct investmentControls apply to (1) investment in air transport by non-EU states or nationals of non-EU states; (2) acquisition of Irish-registered shipping vessels except through an enterprise incorporated in Ireland; (3) acquisition by non-EU nationals of sea fishing vessels registered in Ireland; and (4) investment by residents of non-EU member countries in flour milling activities. Investment 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 or registered office is outside the territory of the EU/EEA must apply to the Ministry of Agriculture, Food, and Rural Development through its Land Services Division for permission to purchase land. Such permission is rarely withheld.
Controls on personal capital transactionsNo.
References to legal instruments and hyperlinksn.a.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutionsNo.
Provisions specific to institutional investors
Pension fundsn.a.
Investment firms and collective investment fundsn.a.
References to legal instruments and hyperlinksn.a.
Changes during 2006
No significant changes occurred in the exchange and trade system.
Changes during 2007
Exchange arrangementJanuary 1. The exchange arrangement of the EMU countries was reclassified to the category independently floating from the category exchange arrangement with no separate legal tender. The new classification reflects only a definitional change.

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