IRELAND
With a population of 5 million and a forecasted GDP of $599bn in 2025, Ireland is a small, open, advanced economy with a strong export orientation and high per‑capita income. Its external position is atypical due to distortions from large multinational embedding, making NIIP figures less meaningful, but public debt is moderate and declining.
Public debt stood at 43.7 percent of GDP at end 2023, is projected to decline to 42.5 percent in 2024, and further to 41.3 percent in 2025 and 38.2 percent in 2026. Tax revenues —especially corporate taxes — have supported repeated fiscal surpluses: a 4.4 percent surplus in 2024, followed by forecast surpluses of ≈1.4 percent in 2025 and 1.3 percent in 2026.
Fiscal credibility remains strong, although heavy reliance on volatile multinational tax receipts means structural buffers are essential. The National Treasury and Financial Management Agency emphasizes long-term sustainability via commitments to future fund transfers and capital investment reserves.
Economic growth in 2024 and 2025 is expected to remain moderate amid global uncertainty, although the labour market remains resilient and domestic demand firm. Growth forecasts are positive but tempered.
Challenges include managing fiscal volatility linked to multinationals, sustaining competitiveness in a high‑cost environment, addressing housing supply pressures, demographic ageing, and meeting climate‑investment commitments without reducing fiscal surpluses.
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 |
|
| PARTICIPANTS |
| |
| TRANSACTION TYPES PROCESSED |
| |
| OPERATING HOURS |
| |
| CLEARING CYCLE DETAILS (eg cut-off times) |
| |
| SYSTEM HOLIDAYS |
| |
| STEP 2 | TYPE |
|
| PARTICIPANTS |
| |
| TRANSACTION TYPES PROCESSED |
| |
| OPERATING HOURS |
| |
| CLEARING CYCLE DETAILS (eg cut off times) |
| |
| SYSTEM HOLIDAYS |
| |
| IPCC | TYPE |
|
| PARTICIPANTS |
| |
| TRANSACTION TYPES PROCESSED |
| |
| OPERATING HOURS |
| |
| CLEARING CYCLE DETAILS |
| |
| SYSTEM HOLIDAYS |
|
- 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.
- 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 |
| - 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 |
| - 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.