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24 1971

CENTRAL BANK ACT, 1971

PART IV

Currency

Standard of value.

43. —(1) The standard unit of value of the State shall be the Irish pound having a par value of 2.13281 grams of fine gold which shall be issued in the form of a legal tender note.

(2) The Government may by order, after consultation with the Bank, change the par value specified in subsection (1) of this section.

(3) The Government may by order, after consultation with the Bank, amend or revoke an order under this section, including this subsection.

(4) Whenever an order under this section is in force, subsection (1) of this section shall have effect in accordance with the terms of the order.

(5) Every order under this section shall be laid before each House of the Oireachtas as soon as may be after it is made.

Issue of legal tender notes by Bank.

44. —It shall be lawful for the Bank to issue legal tender notes to any person on demand or to the general fund against—

(a) gold bullion, or

(b) any currency, security or other form of asset which may be held as part of the capital of the legal tender note fund in accordance with section 61 of the Act of 1927, as amended by sections 2 and 3 of the Currency (Amendment) Act, 1930 ,

delivered to it in such manner and subject to such conditions as it may prescribe.

Amendment of section 49 of Act of 1927.

45. —Section 49 of the Act of 1927 is hereby amended by—

(a) the substitution for subsections (1) and (2) of the following subsections:

“(1) The holder of a legal tender note of any denomination shall be entitled, on demand made by him during office hours at the office of the Bank in Dublin, to receive in exchange for the note a legal tender note or legal tender notes to the same total value.

(2) Every legal tender note shall be exchangeable on presentation at the London Agency for money in any form which is for the time being legal tender in Great Britain for unlimited amounts.

(2A) The Bank may, if and whenever and to such extent as it thinks fit, exchange any legal tender notes presented to it for exchange at the office of the Bank in Dublin for money in any form which is for the time being legal tender in Great Britain for unlimited amounts, or for a draft on London or, subject to and in accordance with the Exchange Control Acts, 1954 to 1970, for other foreign currencies.”,

and

(b) the substitution of “exchange” for “redeem” in subsection (3) and “exchanged” for “redeemed” in subsections (3) and (4).

Amendment of section 50 of Act of 1927 and of section 5 of the Currency (Amendment) Act, 1930.

46. —(1) Section 50 of the Act of 1927 is hereby amended by the substitution of “exchange” for “redemption” in each place where it occurs in subsections (1) and (2).

(2) Section 5 (3) of the Currency (Amendment) Act, 1930 , is hereby amended by the substitution of “exchange” for “redeem” in each place where it occurs.