WHAT is 'IEP (Irish Pound)'

IEP was the the currency abbreviation, or currency symbol, for the Irish pound, the currency of Ireland until 2002. The Irish pound comprised 100 pennies, called pingin in Irish, and often appeared by the symbol £ or IR£ to set it apart from other currencies based in pounds. The Irish term for the Irish pound is the punt Éireannach.

BREAKING DOWN 'IEP (Irish Pound)'

IEP dates back to the first millennium C.E., but following the Act of Union, which joined Ireland and Great Britain into one kingdom, this early Irish pound was assimilated into the British Pound.

After the Irish Free State formed in 1922, trade with the U.K. continued to dominate the Irish economy, so the government did not make it a priority to establish a new currency. It wasn’t until 1927 that the Irish government began issuing the Irish pound, which was pegged to British sterling at parity, and of which the government promised full convertibility to sterling.

For more than a decade, the Irish government managed its currency through a currency board, and it was not until 1942 that the legislature passed a law establishing the Central Bank of Ireland. Even after establishing the new monetary authority, Ireland retained the peg of its pound to sterling, even after Ireland departed from the Commonwealth and declared a Republic in 1948, and after sterling was devalued within the Bretton Woods system in 1949, and again in 1967.

The 1970s were a decade of monetary reform in Ireland, first with the decimalization of the Irish pound and then with the Central Bank Act of 1971, which delegated new powers to the monetary authority and ultimately led to Ireland’s participation in the European Exchange Rate Mechanism in 1978. In 1979, the formal link with the British Pound was broken.

Ireland’s Adoption of the Euro

Momentum for the creation of a single, pan-European currency began to gather in 1986, with signing of the Single European Act, which set the stage for a market without frontiers. A logical complement to this borderless market would be a single, unifying currency.

Ireland was was one of the first countries to adopt the euro on the first of January, 1999. At that point, the value of the Irish pound was fixed to the euro at the rate of to 0.787564 Irish pound. For three years, the euro existed as a virtual currency for bookkeeping purposes, but it wasn’t until the first of January 2002 that euro banknotes and coins were introduced in Ireland.

RELATED TERMS
  1. GBP

    GBP is the abbreviation for the British pound sterling, the official ...
  2. Currency Symbol

    Currency symbol is a graphical symbol used as a substitute for ...
  3. Hard-Coded Stock

    This is a term that refers to a company's stock symbol or ticker ...
  4. GBP/USD (British Pound/U.S. Dollar) ...

    The abbreviation for the British pound and U.S. dollar (GBP/USD) ...
  5. Irexit

    Irexit refers to Ireland's potential exit from the EU.
  6. JPY

    The currency abbreviation or the currency symbol for the Japanese ...
Related Articles
  1. Insights

    Wall Street Likes St. Paddy's Day

    Historically, the S&P 500 has been more likely to rise on St. Patrick’s than the vast majority of other days in the year.
  2. Investing

    The Story Behind The Irish Meltdown

    Once a lesson in national renewal, Ireland is learning that success can be fleeting. Learn the story behind Ireland's crumbling economy.
  3. Retirement

    How Much Money Do You Need to Retire in Ireland?

    After the Celtic Tiger's boom and bust, retiring in Ireland may be more affordable than you think. Here's an overview of what to expect.
  4. Taxes

    Ireland Economics: 3 Troubling Similarities to Greece

    Discover how recent political changes in Ireland could compromise years of balance sheet improvements and economic growth, risking a Greece-like calamity.
  5. Retirement

    Retire in Ireland with $200,000 of Savings?

    Many retirees going to Ireland find that the slower pace translates into a higher quality of life that's also affordable. But can you do it for $200,000?
  6. Retirement

    Find the 5 Top Places for Retiring in Ireland

    From historic, bustling Dublin to the seaside villages of the coasts, these appealing Irish towns deserve a spot on your retirement-destination radar.
  7. Investing

    Apple, Ireland in Deal Over $15B in Unpaid Taxes

    The EC says a sweetheart tax deal allowed Apple to pay almost nothing on its European profits.
  8. Investing

    Google Sheltered $19.2B With Tax Maneuvers: Report

    The search engine giant’s use of tax shelters reportedly saved it as much as $3.7 billion.
  9. Investing

    Apple, Ireland Amp Up Rhetoric Against EU In Tax Case (AAPL, GOOG)

    Apple claims it has been unfairly targeted by an EU commissioner driven by headlines.
RELATED FAQS
  1. Why the British Pound Is Stronger Than the U.S. Dollar

    Learn why the British pound is stronger than the U.S. dollar, despite the U.S. economy being larger than that of Britain ... Read Answer >>
  2. Why is the British pound / U.S. dollar currency pair known as "trading the cable"?

    The British pound / U.S. dollar currency pair is one of the oldest and most widely-traded currency pairs in the world. The ... Read Answer >>
Hot Definitions
  1. Working Capital

    Working capital, also known as net working capital is a measure of a company's liquidity and operational efficiency.
  2. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  3. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  4. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  5. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  6. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
Trading Center