(1) The Minister may, whenever he considers it appropriate, establish accounts denominated in a currency other than the currency of the State and each account so established shall be known as a foreign currency clearing account.

(2) Notwithstanding section 54 of the Finance Act, 1970, section 67(8) of the Finance Act, 1988, and any other statutory provision to the contrary, the Minister may pay into any foreign currency clearing account the proceeds of any borrowing or other transaction denominated in a currency other than the currency of the State but only if such proceeds are not moneys placed on deposit in accordance with section 4 of the Appropriation Act, 1965.

(3) Except for transactions undertaken under section 4 of the Appropriation Act, 1965, all payments and receipts denominated in any currency other than the currency of the State and in respect of which currency a foreign currency clearing account stands established shall be processed through the foreign currency clearing account so established or the Exchequer accounts at the Central Bank of Ireland.

(4) The Minister may, subject to subsection (7), apply any amounts standing to the credit of any foreign currency clearing account towards any of the following, that is to say:

(a) the defraying of interest or expenses arising on the public debt;

(b) the repayment of principal relating to the public debt;