asked the Minister for Finance whether the Irish pound's relationship with the other currencies in the EMS can be maintained in view of the devaluation of the Italian Iira; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - EMS Currencies.
28.
The devaluation of the Italian lira does not affect the maintenance of the central rates of the Irish pound against the other currencies in the European Monetary System. The Government are firmly committed to ensuring the continued stability of the Irish pound in the system.
Will the Minister agree that the devaluation of the Italian lira affects the weight of the basket of currencies and is it the Minister's firm policy to oppose by all means available to him any downward devaluation of the Irish pound?
It is.
Will the Minister outline the effect that the devaluation of the Italian lira has had on the value of the ECU?
That is a separate question but the fact that the lira was devalued does not mean that ours has to follow suit. The Deputy should put down a separate question to know the effect of the devaluation of the Italian lira.
Is the Minister not aware that the devaluation of the lira changes the value of the sum of the currencies and that therefore our relationship to that sum is changed? That is the basis upon which the EMS works. Will the Minister indicate the total effect of the devaluation of the lira on the sum and therefore on our relationship to that sum?
I was asked if the Irish pound's relationship with the other EEC currencies could be maintained in view of the Italian lira's devaluation and I answered that question. If the Deputy wants the other information he should put down another question?
I would advise the Minister to study the EMS.
Question No. 29.