Business group Ibec has warned currency effects and lower exports caused by the British vote to leave the European Union have resulted in "a full blown currency crisis" that threatens jobs in Ireland.
A new survey from the group – for which 450 businesses were asked about the impact of Brexit on them – shows the sharp drop in the value of sterling is the main concern for nearly half of Irish firms (45%).
According to Ibec, this means exporters are operating with a major competitive handicap in the UK market, while domestic firms are facing the prospect of cheaper UK imports grabbing market share.
Ibec Director of Policy Fergal O'Brien said: "The Brexit strain is manifest and intense. Without urgent action to address competitive pressures, hundreds of millions of euro worth of exports and thousands of Irish jobs will be lost.
"Individual businesses have been slow to talk publicly, but the feedback from members is clear and unambiguous. Businesses and jobs are already under threat.
"This is now a full blown currency crisis. For exporters, the speed of sterling’s decline is on a par with the 1992 currency crisis.
"Irish exporters to the UK are already 15% less competitive and things could get much worse. The problem demands urgent government attention," Mr O’Brien added.
The Ibec study also shows just below one in ten (9%) businesses here have Brexit contingency plans already in place, while nearly one in four exporters (24%) have currency hedging arrangements in place.
