Economy, Currency and Banking

The monetary unit of Ireland is the single currency of the European Union (EU), the euro (1.07 euros equal U.S. $1; 1999 average). Ireland is among 12 EU member states to adopt the euro. The euro was introduced on January 1, 1999, for electronic transfers and accounting purposes only, and Ireland’s national currency, the Irish pound, was used for other purposes. On January 1, 2002, euro-denominated coins and bills went into circulation, and the Irish pound ceased to be legal tender.

As a participant in the single currency, Ireland must follow economic policies established by the European Central Bank (ECB). The ECB is located in Frankfurt, Germany, and is responsible for all EU monetary policies, which include setting interest rates and regulating the money supply. On January 1, 1999, control over Irish monetary policy was transferred from the Central Bank of Ireland to the ECB. After the transfer, the Central Bank of Ireland joined the national banks of the other EU countries that adopted the euro as part of the European System of Central Banks (ESCB).