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If Westminster says "we withdraw support for you using GBP as of day one of independence" then it's one hell of a negotiation leverage.
What does support mean, in this context?
Dammit-
What does support mean, in this context?
found out a bit more about this yesterday.
Basically, without the support of the bank of England as a clearing house, you can't use the currency.
And if you did, you'd have your interest rates being set by a foreign country. One that you had just pissed off.
The alternative is to change currency from GBP to something else. This raises at least two interesting questions:
what happens to everyone's mortgages that are now in a foreign currency, subject to foreign interest rates and exchange fluctuations?
what happens to all of the state pensions that are now sort of owed to your citizens by a foreign nation, that are also subject to foreign interest rates and exchange rates. Said foreign nation has no obligation to honour them and there is no international jurisdiction that can force them to.
mashton
My understanding is that the real currency problem with ScotIndy would not be "which currency" but when?
If Westminster says "we withdraw support for you using GBP as of day one of independence" then it's one hell of a negotiation leverage.
Makes you wonder what would have happened in Brexit if we had adopted the Euro back in 1999.