Scottish pound: Independent Scotland would introduce new currency

Scotland would transition to the use of a new currency “as soon as practicable” after achieving independence from the United Kingdom under plans unveiled by Nicola Sturgeon.

Scotland would push for the creation of its own money, the Scottish Pound, monitored by a newly-established Scottish Central Bank, though said any transition would be “guided by criteria and economic conditions rather than a fixed timetable”.

“We propose that, on independence, Scotland would continue to use the pound Sterling for a period before moving to a policy of adopting a Scottish pound,” the plans state.

“While Scotland is still using sterling, many aspects of monetary policy would continue to be set by the Bank of England. However, an independent Scottish Central Bank would be established with oversight of monetary and economic conditions in Scotland and with responsibility for financial stability.”

Meanwhile, oil and gas revenues, valued at an estimated £20bn, would be used for “a targeted boost to infrastructure investment,” while also aiding the transition to a net zero economy.

Revenues from the North Sea fossil fuels industry will fund a £20bn investment in the first decade of an independent Scotland, Sturgeon said.

The “Building a New Scotland Fund,” launched in the event Scotland backs a Yes vote, would ensure the country “gets off to the best possible start” post leaving the United Kingdom.

The First Minister said Scotland would continue to use Sterling for a period in the event of a Yes vote, but would seek to “build a wellbeing economy that works for all”.

Sturgeon added that the current UK economic turmoil was “not a passing storm” and instead pointed to a “fundamentally flawed system,” adding it was now “glaringly obvious [the UK] does not offer economic strength and stability or financial security”.

It came as the FM outlined her economic case for Scotland leaving the union.

The paper, the latest in the “Building a New Scotland” series, also proposes rejoining the European Union and “redesigning” the country’s energy market to provide “secure and reliable low cost energy”.

She said the prospectus would “openly and frankly” address issues like currency, debt, deficit and trade.

It stated that Scotland had a “moral duty” to take on a portion of UK debt, but that Holyrood would push for a “fair deal” on assets.

The supreme court is currently considering whether Scotland has the power to host a referendum on leaving the UK.

More to follow…