Louis J. Belton
Ceist:30 Mr. Belton asked the Minister for Finance if he will outline (1) the changes he intends to make in exchange control policy from 1 January 1992 and (2) the likely effect these changes may have on interest rates.
Written Answers. - Exchange Control Policy.
The next stage of the lifting of Exchange controls will take place on 1 January 1992. This will be the penultimate stage in the liberalisation process which began in 1988. There is a large number of changes which will take effect from 1 January 1992 and for convenience I have drawn up a list which I am making available to Deputies. A detailed notice covering both the last set of changes, on 1 January and 1 June 1991, and the proposed changes has already been issued by the Central Bank on 1 November.
In relation to the second part of the question, the exchange control relaxations effective from 1 January 1992 will, among other things, allow non-resident banks greater freedom to make short-term deposits in Irish pound with Irish banks. On balance, I would expect these changes to be generally positive for Irish interest rates because they should help reduce the differentials between Irish short term interest rates and corresponding rates abroad.