Scotland’s currency choices in the event of independence

Author: Eamonn Sheridan | Category: News

A quick article in the FT outlines Scotland’s currency choices should it vote for independence and the UK refuses a formal currency union:

(1) Use the pound anyway

  • Even if the Westminster government does not agree to share the pound, Scotland could use it anyway, without a say in monetary policy
  • Ecuador and Panama, for example, have adopted the US dollar

(And, I should add, Tasmania uses the Australian dollar … There, that should get me in trouble for today … :-D )

(2) Join the euro

  • It would not be an immediate option

(3) Launch a Scottish currency

  • Without its own borrowing history, an independent Scotland might find the currency quickly loses value when traded and markets could demand a higher interest rate on its debt

There is more detail at the article, the Financial Times is gated, but can be read with a free registration: Scotland’s currency choices in the event of independence

More on potential Scottish independence from our man on the spot, who is free to think deeply on such issues as he doesn’t have to waste his time washing his hair (on his head, at least):  On this day in September we might be removing the blue from the Union Jack flag

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