A NEW report has been published, detailing the development of a future Scottish currency with the intention of helping independence campaigners answer tricky questions about the country’s monetary policy after a Yes vote.
The Road to The Scottish Currency: Q&A document aims to give “short and simple” answers on key questions about the development of a new currency after independence.
It is split into seven sections to cover topics such as exchange rates, savings, wages and salaries and the practicalities of introducing a Scottish currency.
Created by the Scottish Currency Group, chaired by SNP member Tim Rideout, the document, seen in advance by The National, sets out a vision for the Scottish pound, which the group said would be tied in value to pound sterling for a period immediately following independence before becoming a floating currency.
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The document sets out the process by which the Scottish Central Bank, which the group envisages being set up immediately in an independent Scotland, would build reserves of foreign cash as well as the methods by which it would incentivise people to make the switch over from sterling.
SNP members rejected a topical motion for debate from the group, which called for the party to take a more active role in promoting the concept of a new Scottish currency after independence.
The SNP back the development of a new currency but the subject was not discussed in depth during the gathering in Aberdeen, which concluded on Monday.
Rideout’s group think that it would take “about four years” to develop the new currency, and said around 18 months of that work could take place before an independence vote, calling the process of introducing new money “straightforward” and pointing to recent examples of Slovenia, Slovakia, Latvia, Lithuania, and Estonia as places which have successfully done the same.
The document is intended to be used by independence campaigners as a guide to answering concerns voters may have about independence around using a new currency.
It is envisaged that sterling and the Scottish pound will co-exist in Scotland until the country fully makes the switch, which the document said will need to include the development of a Scottish stock exchange. The group said it will eventually become “inconvenient” to use sterling post-independence and this will encourage more people to switch.
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People will still be able to keep their savings in sterling if they wish, the document adds, though foreign banks - as UK banks would become following independence – would need to adhere to the new rules set by the Scottish Central Bank and set up new operations north of the Border to continue trading.
A statement from the Scottish Currency Group said: “The present Q and A report, prepared by a Scottish Currency Group Campaign Team chaired by Lynne Copland, builds on our previous work by answering frequently asked questions about a Scottish currency - with the aim of explaining to the wider Scottish electorate how it can be introduced, how it will operate, and how it will affect ordinary households and businesses.
“We recognise of course that some details, including the precise timing of the introduction of a Scottish currency, will in practice be decided by the post-independence Scottish Government in the light of circumstances at the time and the outcome of negotations with the UK Government, and cannot therefore be determined in advance by the Scottish Currency Group or the present Scottish Government.”
You can read the full Q&A document and find out more about the Scottish Currency Group here.
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