IRELAND

Export Atlas in PDF

Ireland is one of the smallest and most open countries in the Eurozone. Thanks to an attractive fiscal and regulatory environment, a skilled English-speaking workforce and access to EU markets, the country attracts numerous foreign multinationals (especially in the pharmaceutical, information & telecommunication and electronics industries) which export huge volumes of high value-added finished products to the rest of the world. With only 4.5 million inhabitants, Ireland generates one of the world’s largest trade surpluses, excluding oil and gas exporters.

From mid-1990’s to the 2008 financial crisis, Ireland experienced a period of formidable economic expansion, for which it has won the nickname of “Celtic Tiger”, but this boom was achieved at the cost of excessive distortions. A deep economic crisis occurred in 2010, forcing the EU-IMF to adopt a rescue plan. Since, the implementation of the programme was a success and authorities have embarked on an ambitious fiscal consolidation programme. The flexibility of the economy also allowed competitiveness to be restored quickly. Ireland has fully repaid the IMF and now enjoys very easy market access.

The Irish activity is one of the few that have expanded during the Covid-19 crisis (GDP was up 1.1% in 2020). This illustrates the increasing Country’s dependency on Multi-National Enterprises (MNEs), which now account for half of GDP and saw their business boosted by the pandemic. Besides, Brexit did not have negative immediate consequences for the economy, as Dublin served as preferred destination for capital leaving United Kingdom

As consequence of actions to counterbalance the Covid-19 pandemic, General Government primary surpluses moved into deficits in 2020, while debt jumped to 63 pct from 57 pct of GDP in 2019 (European Commission estimates). Yet, the deterioration in public accounts appears to be much less dramatic than elsewhere in the European Union, as MNEs activities keep supportive for fiscal revenues. Borrowing conditions still look very easy:

Summary

BNP Paribas is located in the IFSC with over 600 employees, and has been active in Ireland since 1973. BNP Paribas is the only non-retail bank with direct access to the local electronic and paper clearing systems. BNP Paribas has built up a formidable reputation in supporting the cash management and trade finance needs of both corporations headquartered in Ireland and subsidiaries of foreign multinationals.

In Ireland, BNP Paribas is located at Termini, 3 Arkle Road, Sandyford, Dublin D18 C9C5, IRELAND.

Currency

Ireland uses the euro (EUR).

	2015	2016	2017	2018	2019	2020
Exchange rate: EUR per USD	0.9017	0.9040	0.8873	0.847	0.893	0.88

Source: IMF, International Financial Statistics, June 2021.

The Irish central bank is the Central Bank of Ireland (CBI – www.centralbank.ie).
The CBI is a member of the European System of Central Banks (ESCB) and operates certain activities, such as issuing currency, under the authority of the European Central Bank (ECB – www.ecb.europa.eu).

Bank Supervision

In November 2014, the ECB, via the Single Supervisory Mechanism (SSM), assumed responsibility for supervising the financial stability of banks operating within the euro zone. However, while the ECB has final supervisory authority over all banks operating within the euro zone, it will only directly supervise those banks classified as ‘significant’ under the terms of the SSM (115 significant banking groups have been recognized to date). ‘Less significant’ banks will continue to be supervised by the national supervisory authority, i.e. the CBI.

Bank accounts

A company is generally considered resident in Ireland if its place of effective management is located in Ireland.

	Within IRELAND	Outside IRELAND
Local Currency	Permitted without restriction, fully convertible.	Permitted without restriction, fully convertible.
Foreign Currency	Permitted without restriction, fully convertible.	Permitted without restriction, fully convertible.

	Within IRELAND	Outside IRELAND
Local Currency	Permitted without restriction, fully convertible.	Permitted without restriction, fully convertible.
Foreign Currency	Permitted without restriction, fully convertible.	Not applicable.

Lifting fees are not applied on payments between resident and non-resident bank accounts.
Item based charges and/or subscription fees are typically applied on payments between resident and non-resident bank accounts.

Factoring

Ireland is serviced from the United Kingdom.

Please consult the United Kingdom pages.

Ireland is serviced from the United Kingdom.

Please consult the United Kingdom pages.

BNP Paribas Cash Management Capabilities

Cash collections
Cheque collections
Direct debit collections
Domestic incoming transfers
Virtual IBAN
Virtual accounts
International incoming transfers
Card acquiring

Cash withdrawals
Cheque payments
Direct debit payments
Domestic outgoing transfers
Commercial cards
Virtual cards
International outgoing transfers
SWIFT gpi
Real-time international payments through BNP Paribas’ network
Card issuing

Local e-Banking
Global e-Banking - Connexis
SWIFT/ host to host

Payments & collections

Electronic credit transfers are the most commonly used payment method by larger companies to make supplier and payroll payments. Although smaller companies and consumers still use cheques, their use is declining. Card payments, and particularly contactless payments, are becoming widely used. There were 611 million contactless payments in 2020, valued at more than EUR 9.2 billion, significantly more than the volume (508 million) and value (EUR 6.1 billion) in 2019. Ireland’s retail banks in partnership with the BPFI are currently developing a mobile payment solution, which will be built on the SEPA infrastructure. The solution with be compatible with SCT Insts.

Electronic banking services are available from all banks. There is no national electronic banking standard in Ireland, so companies use banks' proprietary services. Multinational companies also use the SWIFT for Corporates messaging standards.

Mybills.ie is an online service providing consumers with household bills electronically. This service is provided by An Post. Online and mobile banking services are provided by all of the country’s leading banks. According to the BPFI, 77% of bank customers use online/mobile banking to access accounts compared to 12% who do so via their branch.

TARGET 2 - IE	TYPE	Real-time gross settlement. Irish component of the pan-European TARGET2 system.
	PARTICIPANTS	15 direct, 10 indirect.
	TRANSACTION TYPES PROCESSED	High-value and urgent EUR-denominated domestic and cross-border credit transfers. Net obligations from the IPCC.
	OPERATING HOURS	06:00 - 17:00 WET, Monday to Friday.
	CLEARING CYCLE DETAILS (eg cut-off times)	Payments cleared and settled in real time. Interbank payment cut-off time = 17:00 WET.
	SYSTEM HOLIDAYS	TARGET2 is closed at weekends and on 1 January, Good Friday, Easter Monday, 1 May and 25 and 26 December.
STEP 2	TYPE	Multilateral net settlement system.
	PARTICIPANTS	3 direct.
	TRANSACTION TYPES PROCESSED	SEPA credit transfers and direct debits.
	OPERATING HOURS	24 hours a day, Monday to Friday.
	CLEARING CYCLE DETAILS (eg cut off times)	Payments are cleared and settled in batches. SEPA credit transfer cut-off times: 15.00 WET for same-day settlement. 20.00 WET for overnight settlement. 00.00 WET for next-day settlement SEPA direct debit cut-off times: CORE - 10.00 WET for same-day settlement. B2B - 11.00 WET for same-day settlement.
	SYSTEM HOLIDAYS	STEP 2 is closed at weekends and 1 January, Good Friday, Easter Monday, 1 May, 25-26 December
IPCC	TYPE	Deferred net settlement system.
	PARTICIPANTS	10 direct.
	TRANSACTION TYPES PROCESSED	Paper-based payments (e.g. cheques).
	OPERATING HOURS	See clearing cycle details.
	CLEARING CYCLE DETAILS	Each participant bank has its own bilateral arrangements as regards operating hours and cut-off times for submitting payments. Final settlement takes place via TARGET2-IE on day three of the processing cycle.
	SYSTEM HOLIDAYS	The IPCC is closed on all Irish bank holidays. Ireland’s bank holidays are: 2nd half 2021: 2 August, 25 October, 25, 27–29 December. 2022: 1 January, 17 March, 15, 18 April, 2 May, 6 June, 1 August, 31 October, 25-28 December.

Credit transfers are used by companies to pay salaries and suppliers, and to make tax and treasury payments.
SEPA credit transfers can be settled via STEP2 or via correspondent banking networks.
Approximately 207 banks in Ireland participate in the SEPA credit transfer scheme.
High-value and urgent domestic and cross-border (within the euro zone) credit transfers can be settled in real time via TARGET2-IE.
High-value and urgent cross-border payments can also be settled with end-of-day value via the Euro Banking Association’s EURO1 system. Two banks in Ireland participate directly in EURO1.
Cross-border transfers can be made via SWIFT and settled through correspondent banking and bank branch networks.
The European Payment Council’s SCT Inst scheme (a pan-European 24/7 instant payment scheme for SEPA credit transfers) enables the transfer of funds (the maximum threshold value is EUR 100,000) to another account in less than ten seconds. Three banks in Ireland participate in the scheme.
EBA Clearing and Italy’s SIA Group have developed and implemented a pan-European platform for instant EUR payments called RT1. It is fully compliant with the SCT Insts scheme and is in line with the ISO 20022 global messaging standards for instant payments.
TIPS is a pan-European service for the settlement of instant payments in central bank money. The service enables payment service providers and ACHs with access to TARGET2 to offer fund transfers 24/7, 365 days a year. TIPS is aligned with SCT Insts. It is primarily focused on EUR payments but is technically capable of settling payments denominated in other currencies.

Direct debits are used for regular payments, such as utility bills.
SEPA direct debits can be cleared and settled on a same-day basis via STEP2.

The cheque is not a common cashless payment instrument. In 2019, cheque volumes decline by 12.9% to 31.7 million.
Cheques are no longer a payment option when dealing with government departments, state agencies and local authorities.
All cheque payments incur a 50 cents stamp duty.
Cheques are settled on a three-day cycle via the IPCC. Cheques issued and deposited at the same bank branch are settled on a same-day basis.
High-value cheques issued in Dublin can be truncated into electronic items before being settled on a same-day basis via TARGET2-IE.

Card payments, particularly debit card payments, are increasingly popular, especially for retail transactions.
In 2019, debit card volume and value increased by 17.2% and 12.6% respectively, to 999.6 million, with a value of EUR 40.1 billion. Credit card volume and value increased 18.4% and 23.4% respectively, to 150 million, with a value of EUR 12.1 billion.
There were 1.9 million credit and 5.6 million debit cards in circulation at the end of March 2021.
There are approximately 4.6 million contactless debit cards and 1.3 million contactless credit cards in circulation. There were 611 million contactless payments in 2020 valued at more than EUR 9.2 billion, significantly more than the volume (508 million) and value (EUR 6.1 billion) in 2019, caused partly by the increase in threshold for contactless payments in April 2020 to EUR 50. Ireland’s largest banks have announced that they will start charging for contactless payments.
Visa and MasterCard-branded payment cards are most widely issued.
American Express and Diners Club credit cards are also available.
All cards issued are SEPA-compliant with EMV chips.

There were 2,876 ATMs in Ireland at the end of 2019
There were 313,152 POS terminals in Ireland at the end of 2019.
All ATMs and POS terminals are EMV-compliant.

Pre-paid cards such as Mastercard Everyday Money prepaid card, Swirl and Skrill are available in Ireland.
Mobile wallet schemes such as Apple Pay and Google Pay are available.
E-money payments increased 144.4% and 100% respectively in volume and value terms in 2019, to 15.4 million, with a value of EUR 0.4 billion.

Short term investments

Interest payable on credit balances

Interest-bearing current accounts are permitted for residents and non-residents but are not common.

Demand deposits

Demand deposits are permitted for residents and non-residents.

Time deposits

Time deposits are available in EUR and major foreign currencies for terms ranging from overnight to one year.

Certificates of deposit

Domestic banks issue certificates of deposit for terms ranging from seven days to 12 months.
There is an active secondary market.

Treasury (government) bills

The National Treasury Management Agency (NTMA) issues discounted zero-coupon Irish Treasury bills (ITBs) with a range of maturities from one, three, six, nine and 12 months. The minimum investment is EUR 1 million. Participation in auctions is limited to recognised primary dealers in Irish Government Bonds and eligible counterparties.
The NTMA also issues discounted exchequer notes (minimum investment EUR 5 million). Terms range from overnight to one year.

Commercial paper

Domestic commercial paper is issued by large companies and public authorities. Most paper is issued for terms ranging from seven days to one year. The minimum investment is EUR 125,000.
Euro commercial paper (ECP) is typically issued by the government for terms ranging from one to six months.
A USD 50 billion multi-currency ECP programme is run by the government.

Money market funds

Domestic money market funds are available.

Repurchase agreements

Repurchase agreements are available in Ireland.

Banker's acceptances

Banker's acceptances are not used in Ireland.

BNP Paribas Trade Finance Capabilities

Documentary credits
Documentary collections

Bank guarantees
Standby letters of credit

Receivables
Payables
Inventory

Connexis Trade
Connexis Supply Chain
SWIFTNet Trade for Corporates
Connexis Connect
Connexis Guarantee
SWIFTnet Supply Chain

BNP Paribas' Global Trade Solutions (GTS) team, based in Dublin, provides comprehensive solutions and services to corporations headquartered, or operating in Ireland. In addition to trade finance products and supply chain management solutions, the Dublin-based trade finance platform provides a dual role as the location of the Utexam franchise including two key trading companies: Utexam Logistics Ltd and Utexam Solutions Ltd, which manage all inventory management transactions worldwide.

International trade

As a member of the European Union (EU), Ireland follows the EU customs code and applies all associated regulations and commercial policies.
Trade with countries in the European Economic Area and Switzerland is exempt from tariffs and other controls.
Ireland operates the Shannon Free Zone in the west of Ireland.

The EU has trade agreements in place with over 30 countries.
The EU is currently in free trade negotiations with a number of countries, including the Association of Southeast Asian Nations (ASEAN), Australia, Indonesia, Mercosur (the Southern Common Market), Uruguay, and the USA. The EU-UK Trade and Cooperation Agreement came into force on 1 May 2021.

Imports	Medical cultures/vaccines	Nitrogen compound	Packaged medicines	Integrated circuits	Scented mixtures
Primary Import sources	UK (31%)	USA (16%)	Germany (10%)	Netherlands (5%)	France (5%)
Exports	Medical cultures/ vaccines	Nitrogen compound	Packaged medicines	Integrated circuits	Scented mixtures
Export markets	USA (28%)	Belgium (10%)	Germany (10%)	UK (9%)	China (5%)	Netherlands (5%)

		2016	2017	2018	2019	2020
Exports	- goods USD m	205,999	223,826	249,522	254,663	NA
Exports	- services USD m	146,637	183,367	222,074	247,650	NA
Imports	- goods USD m	92,108	100,112	120,474	121,294	NA
Imports	- services USD m	191,879	231,269	240,643	331,684	NA
Current account as % GDP		+ 4.8	+ 1.0	+ 10.7	- 11.6	NA

Sources: IMF, International Financial Statistics and Central Statistics Office, Ireland, June 2021.