Common Currency

dublin | crime and justice | opinion/analysis

Tuesday October 02, 2007 10:16

by Domhain Sceadaman - The Plain People of Ireland

Who made cash out of devaluation in 1993

During the period September 1992 to February 1993 an estimated £IR2.5 Billion was made by currency speculators ofshore betting against and for the Punt

When Sterling dropped out of the ERM in September 1992 the sharp depreciation of the UK Pound forced the UK/IRL exchange rate from an average of Stg. 0.92/IR in the late summer to Stg. 1.10/IR and beyond in November of 1992.

These unsustainable exchange rates led to a vast amount of speculation which drained huge amounts of money out of the Irish banking system and short term interest rates, in Ireland, reached 100% (per annum) in November at times. The one month rate hovered around the 50% mark at one point in November. This was devastating for indigenous Irish businesses.

By the end of 1992 there was virtually no money left in the Irish central banks kitty. The crisis continued into January 1993 with the central bank raising rates to 100% pa. on overnight money. The irish Punt was devalued by 10% on Saturday 27th January 1993. The currency speculation surrounding this devaluation was intense.

Vast amounts were made during the period September 1992 - February 1993 by persons "in the know" mostly via AIB Isle of Man and Jersey and Bank of Ireland, Isle of Man.

Can anyone tell me who was Minister of Finance at the time?

Is anyone aware of any suspicious financial transactions, after this time, including people feeding money back into Ireland. especally any which involve currency other than Punts or Sterling?

Can anyone shed any light as to who these speculators were?

Did any of these speculators pay "tribute" to anyone?

Who was "Mr S" the high level trouble-shooting manager parachuted into AIB O'Connell Street to perform "housekeeping" in 1993-95?

We, the plain people of Ireland, should be told.

Domhain Sceadaman