Sterling’s effect on export competitiveness
The Minister said the Irish pound had appreciated by about 1 per cent on a trade-weighted basis, an insignificant effect on exports, so no action was needed.
asked the Minister for Finance if the continued rise in the value of sterling will undermine the competitiveness of this country's exports; and if so, the action that will be taken to offset this effect.
Comment on this
The effective trade-weighted appreciation of the Irish pound since the British Government announced, at the end of October 1977, a change in their policy towards the exchange rate for sterling has been about 1 per cent. In more recent months, the trade-weighted value of the Irish pound has been relatively stable.
The net effect on exports of an appreciation of this order is insignificant and, consequently, no action is called for.