Why does Scotland need a Foreign Currency Reserve?
Answer:
A foreign currency reserve is needed to support the domestic currency. It helps maintain the value of the currency and can be sold when required. Having and financing its own foreign currency reserve would cost about half a million pounds cheaper than servicing Scotland's share of the UK reserve.
Full answer here: The advantages of having our own foreign currency reserve
Backing Scotland’s Currency – Foreign Exchange Reserves for an Independent Scotland
Author / Creator: Peter Ryan
Media type: Policy Paper
Date published:
Examining how an independent Scotland could back and defend a Scottish currency. Rereign reserves can be backed by debt and asset negotition, Sterling currency in circulation in Scotland, foreign exchange swaps with the Bank of England, and issuing Euro bonds.