BoE Governor Adds Anti Currency Union Talking Points

September 9, 2014 Share Print 0

Bank of England governor Mark Carney has told trade unions that currency union in the event of Scottish independence would be “incompatible with sovereignty”.

Mr Carney told the TUC conference that a currency required a centralised bank and shared banking regulations.

Common taxation and spending were also needed, he said.

The SNP said currency union was “in the best interests of both an independent Scotland and the rest of the UK”.

It added that currency union plans had been considered in detail.

For their part, pro-union campaigners said a shared currency would be “bad for Scotland”.

The Scottish National Party (SNP), which wants to keep the pound in the event of independence, said that its plans had been “considered in detail” by the Fiscal Commission, a working group of the Scottish government.

An SNP spokesperson for Scottish finance minister John Swinney said: “Successful independent countries such as France, Germany, Finland and Austria all share a currency – and they are in charge of 100% of their tax revenues, as an independent Scotland would be. At present under devolution, Scotland controls only 7% of our revenues.”

The Conservatives, Labour, and the Liberal Democrats have all come out against a currency union with an independent Scotland.

The SNP spokesperson said that “the political position of the three Westminster parties… will of course change after a Yes vote.”

“And as the momentum builds behind the Yes campaign, their currency bluff has well and truly been called,” the spokesperson added.

via BBC

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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.