asked the Minister for Finance what measures are in operation to safeguard the Irish pound in the event of a run on Irish currency; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Irish Pound.
48.
I am quite satisfied that there is no question of a run on the Irish pound. The Country's external reserves, the first line of defence of the currency, total £297 million which is a near record level and which is high by international standards.
Apart from our own reserves we have substantial drawing rights in the International Monetary Fund which can be availed of if the need should arise. Our position in this respect has been strengthened by the allocation of special drawing rights made to us under the new scheme introduced by the fund last year to improve international liquidity.
It has been and continues to be a first objective of monetary and credit policy to avoid any undue reduction in the reserves. This policy has been successful to date and I am confident that it will continue to be. The Irish economy is basically sound and, as previously stated, the Government will not hesitate to take whatever measures may be necessary to keep it so. This in itself will guarantee the soundness of our currency and ensure against any outflow of funds that might endanger it.
If there were to be a run on our currency and the Government decided to make the Irish pound not convertible could the Minister describe the mechanics which would be used to enforce this decision?
That seems to be a separate question.
Apart from the fact that it is a separate question, it is a purely hypothetical question.
It is directly related to the question I have on the Order Paper. I asked what measures are in operation to safeguard the Irish pound.
I have mentioned them and the Deputy is now talking about a hypothetical situation as if it were going to arise.
I hope it will not arise.
The situation the Deputy visualises will not arise and I am not prepared to support speculation about such a situation thereby giving credence to a suggestion that it might arise.