The weakening dollar could erode Ireland’s competitiveness and lead to job losses in the multi national sector according to group for small businesses, the ISME.
If the dollar continues to depreciate against the Euro, coupled with Ireland’s wage inflation domestic competitiveness could be undermined to the tune of 30-35 per cent, the ISME warned.
According to the ISME’s chief executive, Mr Mark Fielding, Ireland is uniquely vulnerable to the sudden depreciation of the dollar because of the heavy reliance on US transnational businesses.
"Ireland is now handcuffed to the Euro zone and has no immediate answer to the dollar and sterling’s exchange rate fluctuations," Mr Fielding said.
"The fact that two thirds of our total exports are sold outside the EU highlights our vulnerability to fluctuating exchange rates in comparison to our EU colleagues", he added.
To help alleviate the impact of currency fluctuations Mr Fielding called on the Government to, provide support for all Irish companies wishing to diversify into the EU market and not just for those who come under the "picking winners" policy of Enterprise Ireland.
He also called for the creation of strategic business alliances with the lower cost EU applicant countries of Eastern European.