The SNP’s Currency Proposals

Primary Author or Creator:
Iain Hardie
Centre on Constitutional Change
Alternative Published Date
Type of Resource:
Fast Facts

"On the surface, the government’s proposals on currency appear little changed from the Scottish Growth Commission (SGC)... However, this masks significant changes in the new proposals."

More details

"A new currency is an independent Scotland’s best option, and informal currency union its worst. The Scottish Government’s economic proposals for independence appear to be a move in that direction relative to the SGC in 2018. However, they do not present a convincing case for a period of continuing to use Sterling rather than moving immediately to a new currency. None of the ‘successful independent countries’ the proposals consider choose informal currency union. The proposal is ‘grounded in practicality for households and businesses’, but an indeterminate but short time with continued dependence on decisions in London and reduced protection from the consequences of those decisions is neither practical nor necessary. The immediate adoption of a new currency will still involve an extended period of transition as Scottish households and businesses increasingly use the new currency, but it is best that this transition starts with independence. "