The Governor of the Central Bank has confirmed that he spoke to the Taoiseach about the possibility of the break-up of the euro.
Patrick Honohan said that discussions took place in the context of contingency planning during 2012, when he said there were a lot of concerns about the system.
However, he said the concerns were about the currency itself, not about Ireland or Irish banks.
Speaking to reporters after an economics seminar at the Royal Irish Academy, Mr Honohan said: "I think his [the Taoiseach's] recent clarifications put this story to bed really."
Mr Honohan said Enda Kenny talked about contingency planning exercises, including "all sorts of outré ideas" which he was not directly involved in.
He said the Central Bank did their own contingency planning, "which we do not tell anyone about, but we also participated in Government exercises, we participated very fully".
When asked if he advised the Taoiseach to have the army on standby, Mr Honohan said he did not want to get into the detail of conversations he had with the Taoiseach.
"I was in no doubt he had officials in other departments talking about contingencies of that type, that's not territory the Central Bank is involved in or was involved in, and I think that is clear now from what he is saying now."
Asked if the contingency planning was related to a specific event or was of a general nature, the Governor said "I think we are talking about 2012, and it is no mystery there were a lot of concerns about the system - and its about the system, it was not about Ireland."
Call for Taoiseach to clarify capital controls comments
Sinn Féin has called on the Taoiseach to clarify whether or not the State was within 48 hours of introducing capital controls when the euro was at its worst in 2012.
Speaking on RTÉ's Morning Ireland programme, Sinn Féin Finance Spokesperson Pearse Doherty, said Enda Kenny must disclose how close the Government was to executing a contingency plan and whether the Governor of the Central Bank had warned him to post army guards on the banks around the country.
Yesterday, Mr Kenny conceded that he received no specific warning from Patrick Honohan in relation to calling in the army to protect the banks in Ireland.
Asked this morning about his comments that the army was close to being called out to the banks and ATMs during the financial crisis, the Taoiseach said the issue of bank security was raised during a task force discussion about the possibility of the break-up of the euro.
The question on his army comments, made last week during an EPP conference in Madrid, was put to him three times but he declined to explain or repeat them.
A spokesperson for the Taoiseach said Mr Kenny "never claimed that there was a specific one-on-one briefing" regarding a contingency plan.
"But rather that the Central Bank and the Governor were part of a conversation about contingencies being put in place in anticipation of grave difficulties in the eurozone, and that involved security measures around the banks."
Taoiseach accused of telling tales
Meanwhile, Sinn Fein Leader Gerry Adams has accused the Taoiseach of being a "spoof" who "tells tall tales".
Speaking about the Taoiseach's comments in Madrid last week, Mr Adams said "all this tomfoolery ... making an eejit of himself, shows the need for the alternatives outlined by the Right2Change campaign".
The Sinn Fein Leader said he is not accusing the Taoiseach of lying but he said Mr Kenny "gets carried away with himself".
Mr Adams said Pearse Doherty has written to the banking inquiry seeking to have the Taoiseach and the former Central Bank Governor clarify the position.