John Gormley
Ceist:194 Mr. Gormley asked the Minister for Finance the Government policy position regarding the preferred exchange rate, or band of rates, for the Irish punt as against sterling, the deutschmark and the US dollar. [3415/98]
Written Answers. - Exchange Rates.
The objective of the Government's exchange rate and monetary policy is price stability within the exchange rate mechanism of the European monetary system. Reliably low inflation is central to the Government's policy of securing the maximum sustainable economic and employment growth, inter alia by ensuring moderate wage developments. Our recent inflation performance has been excellent.
Within the price stability objective, the objective is that the Irish pound should trade comfortably within the ERM. Participation in the ERM has helped to underpin the policy framework within which strong economic growth has remained consistent with low inflation over recent years.
As regards the euro conversion rate of the Irish pound, I will only say what I have said before which is that the Government's intention is that Ireland joins EMU at an exchange rate that meets the needs of the economy in the fullest sense of the term, and that between now and decision day we will be keeping the issue under active review.