Scottish Independence Could Leave Country Without Currency

A yes vote for independence would break up the UK single market and in the short-term could leave Scottish businesses uncertain of their position in Europe, the all-party business select committee has said in a report.

A protracted Scottish negotiation over EU membership, and the uncertain investment environment arising from a vote in favour of independence, would involve “a leap of faith” and would have a damaging impact on businesses in Scotland as well as other parts of the UK, it says.

The legal advice surrounding an independent Scotland’s place in Europe should be published, it adds.

The Labour leader, Ed Miliband, is due to give a speech to Scottish business leaders in Glasgow on Friday, where he will attack Alex Salmond’s difficulties in explaining what he would do if an independent Scotland is deprived of access to the pound.

The committee raises serious concerns that a yes vote may leave Scotland facing a currency “limbo” and, in the short term, unable to join a sterling currency union and without the prospect of adopting the euro.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza