asked the Minister for Finance if he will register a protest with the EEC regarding the difficulties being experienced by Irish citizens in exchanging Irish currency in many banks and at duty-free shops in the airports of member states.
Written Answers. - Currency Exchange Difficulties.
168.
The exchange of foreign currency by banks and duty-free shops is not governed by specific EEC legislation. In reply to a recent question in the European Parliament, the Commissioner pointed out that they have no authority to force exchange of currencies by private banks or acceptance of payments in currencies other than the domestic currency of the member state concerned. They indicated, further, that they were prepared to take the question up with the Committee of Credit Associations of the European Community, in which the European federations of banks and other credit institutions are represented. The full text of this reply was published in the Official Journal of the European Communities No. C 310/14 of 10 February 1980.
Accordingly, I do not consider that a protest to the EEC would serve any useful purpose. I am having inquiries made, however, about the Commission's approach to the Committee of Credit Institutions.
The Central Bank of Ireland, as the authority responsible for matters relating to the currency, are monitoring the situation regarding the exchange of Irish currency abroad to ensure its widest possible acceptance. For example, specimens of the legal tender notes have been sent to central banks and to banks at several airports abroad. However, a bank will take into account the cost to it of holding Irish currency. Unless a foreign bank or bureau de change has a matching turnover in Irish notes, which depends on location, these notes can only be disposed of by repatriation to this country, which involves postage and insurance. For this reason some foreign banks and bureaux de change may quote an unfavourable rate for Irish notes or may refuse to encash them. The same problem affects other currencies apart from the major international ones. Finally, I should mention that under the Exchange Control Regulations, Irish residents may take only up to IR£100 in cash abroad without special exchange control permission. This £100 may not include legal tender notes of over £20 denomination.