Vol. 517 No. 2
35 Mr. Callely asked the Minister for Finance the impact on the economy of the euro-dollar exchange rate for the first quarter of 2000; the likely developments over the next quarter; and if he will make a statement on the matter. [9324/00]
Since the beginning of the year the euro has fallen by almost 6% against the US dollar. Given our trade links with the US, this would be expected to have an impact on the Irish economy. On the positive side, the competitiveness of Irish companies exporting to the US should improve, leading to higher exports and employment. On the negative side, these trends should push up the price of goods imported from the United States. This increase in import prices would in turn be expected to put upward pressure on inflation and, ultimately, offset any potential competitiveness gains accruing to exporters. Given that oil is priced in dollar terms a fall in the euro-dollar exchange rate tends to push up energy prices.
As regards future exchange rate developments, as Minister for Finance I have not commented in the past on either the Irish pound exchange rate or the euro exchange rate and I do not intend to do so now.
