Coins of The Republic of Ireland - Background

Background

The first coins minted in Ireland were produced in about 995 AD in Dublin for King Sitric, the Hiberno-Norse King of Dublin. These penny coins bore the head and name of the king and the word Dyflin for Dublin. John of England was among the first Anglo-Norman monarchs to mint coins in Ireland; these were farthings, halfpennies and pennies. It was not until the reign of Henry VIII that Irish coins bore the harp and, later in Henry's reign, the year. In the following centuries gold, silver and copper coins were issued, and at one time, metal from melted-down gun barrels was used; this was called "gun money". Coins issued in the 18th and 19th centuries often included the word Hibernia on the harp side. The last Irish coins issued prior to independence were during the reign of George IV, in 1823. Irish coins were withdrawn in 1826 following the full political union of Ireland and Britain in the 1800 Act of Union. Occasional "fantasy" coins were minted in the next century but these were neither circulated nor legal tender.

When the Irish Free State introduced new coins and notes after independence, it was decided that these would remain pegged to the pound sterling. The decision was mainly for economic reasons because, in 1924, 98% of Irish exports went to Great Britain and Northern Ireland, while 80% of imports were from those territories. Additionally, the stability and backing of the pound sterling reassured the government that the new currency was on a firm foundation and did not weaken efforts to rebuild the country socially and economically, which was the government's first commitment.

As is common with numismatic terminology the side of the seal of the state is termed the "obverse"; this is often called the common side; the "reverse" is the side with the denomination specific design.

Coins are issued by the central bank which acts as an agent of the Minister for Finance.