UK Osbourne Uses Currency Argument to Derail Scottish Independence

An independent Scotland would be forced to adopt new currency arrangements that would be a “very deep dive into uncharted waters”, George Osborne has warned. The chancellor said an independent Scotland would be unable to operate with a currency linked to sterling, let alone be able to form a currency union with it.

“The best arrangement is if they stay in the UK,” he said.

Osborne said he thought it “unlikely” the rest of UK would agree to a currency union with Scotland, noticeably hardening his rhetoric against Alex Salmond’s proposal.

Speaking on BBC Radio Scotland, the chancellor said: “Why would it want to risk a currency union? We’ve got a currency union in Europe and it’s called the euro, and look at all the problems that has had trying to co-ordinate the economic policies of different countries.”

via BBC

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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