At the moment the SNP favours keeping the pound, so nothing will happen if this is the outcome.
However they could choose to use the Euro, but that would be unlikely given how poorly the Euro is doing at the moment.
Option 1:
Scotland could stay in a Sterling zone (with cooperation between the remaining UK and new Scotland).
Option 2:
Scotland could use ￡ Sterling (without cooperation of the remaining UK), Sterling is a freely tradable currency- as is the US $. Many countries use the $, Scotland could use the ￡ (Sterling)
Option 3:
Scotland adopts the Euro- an inter sting argument, as Scotland needs to get into Europe first (this assumes Scotland will be out on her ear on independence day)
An intersting foot note to those saying Scotland will be forced to join the Euro- have a look at Sweden (who joined the EU in 1995). Sweden does not have the Euro.
The real answer could be negotiated between the Scottish governement and Westminster; this won't happen as Westminster has thown the rattle out of the pram (DC says they will be no pre-negotiation on Scottish independence)
The question of currency poses quite a dilemma. They could apply to join the Euro. That would have been an attractive option ten years ago but not today. They could stay with the pound sterling, that would require negotiations between the UK and an Independent Scotland. Or they could go it alone and float the Scottish Pound on the world currency market, in which case the value of both the Scotish Pound and the Pound Sterling could go either way. The Scottish people deserve to know the answer to this question before they they vote. I hope they vote to stay in the United Kingdom, but if not I wish them well.
The refusal to allow a Scots ￡ to be part of the Sterling zone is very unwise but at best political posturing. Scots oil sales are a huge positive input into the balance of payments deficit being run by the UK. Without this input Sterling faces a run on the ￡ and a full blown currency crisis.
Sterling is a petro-backed currency so what remains of the UK will have to come to a newly elected Edinburgh administration and ask if that situation can continue, now you begin to see why London is sick with worry, in other words what type of currency will sustain HMG level of debt. Don't ever imagine that this process will be one way traffic, those days are about to end for good, and not before time. Scotland brings many guarantees to Sterling it is our currency.
The Royal Bank of Scotland had a licence to print notes backed up by the Pound Sterling. Unfortunately, it went bust, and people like me were told we had bought it.
If anybody is prepared to make a decent offer for it, HM Government is very keen to get it off their hands, but it looks as if nobody is rich enough and stupid enough to buy it.
They have already stated they intend to keep the pound. This is because they will need to borrow from The Bank of England later.
Question basically says it all
