Currency The pound sterling will remain the currency of an independent Scotland until the Scottish people decide otherwise. The pound is our national currency just as much as its the currency of the rest of the UK, and Scotland owns a proportional share of the central bank, the Bank of England, which underwrites that currency. As an independent state, Scotland would have just under 10% of a stake in the Bank of England, and 10% of influence. At the moment any influence Scotland has is exercised by George Osborne. 10% of influence is a damn sight more than the influence we have just now. In any case theres no way that Westminster could prevent Scotland from using sterling. Its a fully tradeable currency, and as such any country could adopt it if it felt like it. However if Westminster did somehow force Scotland out of the pound, theyd wreak havoc on the economy of the rump UK as Scotland would march off with about 10% of the Bank of Englands reserves. Ireland used the pound sterling as its currency from independence in 1922 until the Republic signed up to the ERM, the precursor to the euro. The Irish punt was worth exactly the same as the pound sterling. It was in fact the pound sterling, only in a prettier wrapping. after independence, Scotland would continue to use the Bank of England as its central bank and would negotiate with the rump-UK to form a new sterling area. This would benefit both the rump-UK and Scotland as it would guarantee financial and economic stability for both parties. Despite its name, the Bank of England is the UK central bank, and as such Scots have a percentage share in it. As an independent nation we would not be without influence in the central bank, as we are shareholders in it and would be party to negotiations to form a new sterling area. At the moment we only have the influence of George Osborne and Danny Alexander, even a minority say in the Bank of England is better than that. But more importantly wed have full control over our own tax and spending. Having your own currencys is not the definitive mark of an independent nation. Quite a few independent nations manage quite happily with shared a central bank and a shared currency. Apart from the 17 countries in the Eurozone, there are six independent Caribbean states who share the East Caribbean dollar (EC$), which is currently pegged to the US dollar at the fixed rate of US$1 to EC$2.70. The British territories of Anguilla and Montserrat also use the East Caribbean dollar. All eight share a single central bank. In Africa, eight nations share the West African franc and a single central bank located in Senegal. Another six African nations share the Central African franc and a single central bank located in Cameroun. Four southern African nations, South Africa, Swaziland, Namibia and Lesotho, share the rand as common currency. The key is sovereignty, not an independent currency or an independent central bank. The point is that all the independent nations who share currencies have the right to decide for themselves whether to continue with the shared currency or to leave it. They can remain with a shared central bank or they can set up their own if the shared bank no longer suits. They can make these decisions based upon their own economic and political needs. Scotland does not currently have any choice, were stuck with Westminsters policies whatever our needs may be. With independence, wed have the choice. Scotland would inherit her share of the UK national debt. However if Scotland is expected to carry a share of the UKs liabilities, then she would also be due a share of the assets. Westminster cant have it both ways, they just want us to think they can. Scotland owns 8.6% of all UK assets, other than fixed assets located within the territories of England, Wales and Northern Ireland. That means that we own over 90% of the oil, because its located in Scottish waters. We own 8.6% of all UK embassies, 8.6% of the Falkland Islands, 8.6% of the Bank of England (which despite its name is the UKs central bank) and 8.6% of the Royal Navy. - Gavin Loudon
Posted on: Wed, 28 May 2014 07:31:39 +0000
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