From now on we Elev8
We're more than just a broker. We're an all-in-one trading ecosystem—everything you need to analyse, trade, and grow is in one place. Ready to elevate your trading?
Trading news
10 Sep 2014
BoE's Carney: Independent Scottish central bank would need access to sterling reseves
FXStreet (Łódź) - When asked about the Scottish independence referendum BoE governor Carney suggests that a free flow of people, capital, and goods would be necessary between Scotland and UK if Scots decided to keep the pound.
• "Sterlingization needs credible institutions, deposit insurance."
• The central bank is not necessarily a credible lender of the last resort if it is not a currency issuer, Carney says.
• An independent Scottish central bank could need access to sterling reserves of about 25% of GDP in order to be a credible lender of last resort.
• "Seignorage is not an option in unilateral currency adoption."
• Division of debt and reserves would be a subject to negotiation.
• "Sterlingization needs credible institutions, deposit insurance."
• The central bank is not necessarily a credible lender of the last resort if it is not a currency issuer, Carney says.
• An independent Scottish central bank could need access to sterling reserves of about 25% of GDP in order to be a credible lender of last resort.
• "Seignorage is not an option in unilateral currency adoption."
• Division of debt and reserves would be a subject to negotiation.