Vol. 403 No. 8
25 Mr. Aylward asked the Minister for Finance if, in view of the fact that Ireland has been a full member of the EC since 1973, he will outline the reason exchange rate of the Irish pound vis-à-vis other EC currencies is not publicly displayed, quoted or available to Irish people visiting these countries; and if he will make a statement on the matter.
Because of the relatively small size of the potential business, banks abroad, particularly those located outside the main population centres, encounter little demand for Irish currency notes. A bank on the Continent which accepts Irish notes generally has little option but to send them for credit to their Irish correspondent bank. Handling, postage and insurance costs make this procedure rather expensive. Some banks abroad have therefore been reluctant to accept, or to quote a rate for, Irish currency notes.
The decision to exchange or quote a rate for Irish currency notes is a commercial decision for each individual bank. The Central Bank of Ireland has no authority over banks operating in other EC countries, and therefore is not in a position to require individual banks in those countries to accept and supply Irish currency.
The Irish pound is, however, quoted on foreign exchange markets and in principal banks and foreign exchange retailers abroad.
