For once, I agree with the NTMA strategy, even if comes at the expense of higher interest rates.
Ireland needs to keep reserves for the impending euro implosion that is to come, (or Irish exit from the euro that I hope will come). That implosion may take a few years but it will come. But current EZ policies virtually guarantee that it will collapse.
Further I would advise the NTMA to keep its reserves in any currency except euro and definitely not in banks of EZ countries, where the reserves would be ‘sequestered’ when the collapse comes.
Ireland should work to have at least two years of reserves. This should not include any reserves necessary for debt rollover.