What was an Irish pound
called before the introduction of the euro in 2002?
coins and notes ceased to be legal tender in 2002.
The link to the UK monetary system remained extremely close with the Irish pound
pegged at unity to Sterling until Ireland joined the European Monetary System (EMS) in 1979.
4) Grace Boyle, 4, of Clinton, looks at the Irish pound
cake her mother submitted.
If anything, policymakers expected the new regime to result in an appreciation of the Irish pound
against sterling (which had been notably weak since the mid-1960s), and subsidies were granted from Europe to ease the burden of adjusting to what was believed would be a tougher regime.
The Irish pound
remains tied to sterling until 1979.
Some businesses, using euro cheques drawn on Irish pound
bank accounts, have been invoicing clients and paying suppliers in the new currency, while others have been preparing staff payslips in euros and Irish pounds
unlike the Irish Republic, declined to join the exchange rate mechanism [Mushin, 1986], the Irish pound
had a rigidly fixed exchange rate with the British pound and each of the two banking systems cleared the other's checks as if denominated in its own currency [Mushin, 1980].
The pre-emptive increase, which reflects concern over strong credit growth and rising house prices, widened the short-term differential with Germany to 270 basis points and was a factor boosting the Irish pound
slightly above its central rate in the ERM.
Between then and mid-1993 the Irish pound
floated relative to sterling (except for the 23 months when that currency participated in the ERM) and was quasi-pegged to the Deutschmark and the other narrow-band currencies.
The high interest rates needed to maintain the parity of the Irish pound
within the mechanism, together with the severe loss of competitiveness involved in its appreciation against sterling, began to threaten severe job losses, leading to a 10 per cent devaluation of the central rate of the Irish pound
within the ERM at the end of January 1993.
So was Ireland with the Irish pound
exchanging at a ratio never straying far from 13 Irish for 12 sterling (McCusker, 1978, pp.