Vol. 439 No. 7
45 Mr. Yates asked the Minister for Finance if he has satisfied himself that the proportion of 3 per cent of the national debt being denominated in sterling is adequate and satisfactory in view of the close links between the punt and sterling and the obvious trade relationship between the two countries.
Under the National Treasury Management Agency Act, 1990, the borrowing and debt management functions of the Minister for Finance have been delegated to the National Treasury Management Agency subject to general directions and guidelines issued by the Minister for Finance. The guidelines given to the agency provide it with considerable flexibility concerning the choice of currencies.
I am advised by the agency that in selecting the currencies in which the foreign debt is denominated it seeks to achieve significant diversification of the portfolio while at the same time taking into account the past and expected future volatility of the exchange rates of the various currencies against the Irish pound and the relative level and trend of their interest rates. I am satisfied that the agency will continue to keep the currency composition of the foreign debt under constant review in order to be well placed to benefit from anticipated currency and interest rate movements.
