(South Tipperary) asked the Minister for Finance if he will consider the introduction of legislation at present to repeal the Currency Act, 1927 so as to abolish the statutory linkage of the Irish pound to a sterling currency which has undergone repeated devaluation in recent times and to give this country more financial independence and freedom of action in the event of future devaluations.
Ceisteanna—Questions. Oral Answers. - Link with Sterling.
44.
I do not accept the implication in the question that because of the provisions of the Currency Act, 1927 this country has not got full financial independence and freedom of action in relation to the exchange value of the Irish pound. Subject to the obligations which we share with over a hundred other countries under the Articles of Agreement of the International Monetary Fund, the determination of the par value of the Irish pound is a matter for ourselves. The arrangement made in 1927 was a deliberate decision of the Oireachtas and it can be altered at any time if the Oireachtas considers this course desirable.
When we joined the International Monetary Fund we established with the Fund a par value for the Irish pound in terms of gold. There is possible incompatibility between the provisions of the Currency Act of 1927 and the Bretton Woods Agreements Act of 1957, which governs our relations with the Fund, and I am considering how best to resolve this difficulty.