If Scotland votes to leave is the pound doomed?

[i claudius]

Now that the yes vote is higher than the no vote (latest you gov poll) will the pound tank completely if they leave ,its already going way down ,are we in for a really tough time?

[JockPieandBeans]

I think that you might not be too far off the mark.

[chris2004]

I need to transfer some Pounds to Baht around the 16th Sept. Not sure whether to wait until after the referendum or do it before. Maybe with this latest poll i should do it before the Pound crashes.

[ATF]

How can the GBP crash? If all the Scottish Pounds were recalled and destroyed that would mean the GBP is more valuable.

However the Scots want everything their way. They want to keep the Pound and their right of travel and work in Europe etc.

[i claudius]

The problem is that the pound is being sold off and foreign money being put into the safe haven dollar ,thus making the pound v baht go down quite a bit.

[paddyjenkins]

Four scenarios:

1. No vote and pound strengthens

2. Yes vote and Scotland goes it's own way with its own currency and pays it's it's debts then pound strengthens hugely

3. Yes vote and Scotland goes it's own way with its own currency but defaults on its debt than the pound falls

4. Yes vote and Scotland becomes independent but keeps pound in a union with the UK and pays it's debts then pound stays in a range

[adammike]

I understood one of the rules for any new country joining the EU was that they had to use the Euro.

By the way the oil is mine just like the pound is yours

as it is for a Welshman or somebody from any part of the UK.as you will find out when you try to steal it the English politician's have been very quiet about it so as

not to drive the majority into Salmonds black hole.

as always the lawyers are rubbing there hands.

The court cases will drag on for years.

We will join NATO (though the weapons of mass destruction

[adammike]

will not be based on Scottish soil/water that will include

those British/NATO sub's of course.

[Elmer Gantry]

Ask the expert

[hotsoup]

What's the reason Scottish notes are different from English notes, in the first place? Lots of countries use multiple currencies. Close to home Laos uses Kip, Baht, Dong and $ and probably Yuan

[Dogmatix]

The pound is doomed as far the Scots are concerned because they won't be allowed to use it any more. They will have to go back to the Scottish shilling which last traded at around 200 to the English pound.

Sterling itself should get stronger, as the UK will be relieved of the burden of subsidising Scottish education etc.

[Dogmatix]

What's the reason Scottish notes are different from English notes, in the first place? Lots of countries use multiple currencies. Close to home Laos uses Kip, Baht, Dong and $ and probably Yuan

The reason that Scottish bank notes are different is that the Scottish (and Irish) banks retained the right to print their own notes when the English banks lost that right and they save the cost of paying the BoE for notes. Bank notes are what their name suggests - promissory notes of a bank. The Scottish notes are obligations of those individual banks not on the central bank and, as such, they are not legal tender. You are not obligated to accept Scottish bank notes, even in Scotland. If it goes independent, Scotland will have to set up its own central bank to issue legal tender bank notes and coins which will cost money. You can't have a country with no legal tender currency.

Edited September 7, 2014 by Dogmatix

[ATF]

What's the reason Scottish notes are different from English notes, in the first place? Lots of countries use multiple currencies. Close to home Laos uses Kip, Baht, Dong and $ and probably Yuan

The reason that Scottish bank notes are different is that the Scottish (and Irish) banks retained the right to print their own notes when the English banks lost that right and they save the cost of paying the BoE for notes. Bank notes are what their name suggests - promissory notes of a bank. The Scottish notes are obligations of those individual banks not on the central bank and, as such, they are not legal tender. You are not obligated to accept Scottish bank notes, even in Scotland. If it goes independent, Scotland will have to set up its own central bank to issue legal tender bank notes and coins which will cost money. You can't have a country with no legal tender currency.

Just try changing some of those Scottish Pesos in Thailand. No one will touch them.

[fletchsmile]

I'm still sticking with my view that whether or not the Scottish vote to breakaway from England, after the vote is over the English should be allowed a vote as to whether they want to keep the Scottish

Cheers

Fletch

[Baerboxer]

What's the reason Scottish notes are different from English notes, in the first place? Lots of countries use multiple currencies. Close to home Laos uses Kip, Baht, Dong and $ and probably Yuan

The reason that Scottish bank notes are different is that the Scottish (and Irish) banks retained the right to print their own notes when the English banks lost that right and they save the cost of paying the BoE for notes. Bank notes are what their name suggests - promissory notes of a bank. The Scottish notes are obligations of those individual banks not on the central bank and, as such, they are not legal tender. You are not obligated to accept Scottish bank notes, even in Scotland. If it goes independent, Scotland will have to set up its own central bank to issue legal tender bank notes and coins which will cost money. You can't have a country with no legal tender currency.

"You can't have a country with no legal tender currency" - that's why Salmond thinks he can carry on using the GBP. Same as he thinks he will dictate the terms of Scotland entering the UN, NATO, IMF, UN and every other thing that's current;y taken for granted. His arrogance is only outweighed by his pomposity. When he's told these are the terms, take them or piss off he will be in the crap house as he's not alternative plans.

[paddyjenkins]

And for those with GBP held in Scottish banks or other deposit taking institutions, what becomes of that money if Scotland leaves and adopts a currency that is not the GBP?

[Naam]

I understood one of the rules for any new country joining the EU was that they had to use the Euro.

By the way the oil is mine just like the pound is yours

as it is for a Welshman or somebody from any part of the UK.as you will find out when you try to steal it the English politician's have been very quiet about it so as

not to drive the majority into Salmonds black hole.

as always the lawyers are rubbing there hands.

The court cases will drag on for years.

We will join NATO (though the weapons of mass destruction

I understood one of the rules for any new country joining the EU was that they had to use the Euro.

not mandatory.

[Naam]

And for those with GBP held in Scottish banks or other deposit taking institutions, what becomes of that money if Scotland leaves and adopts a currency that is not the GBP?

these deposits will still GBP. the various non-DEM currencies i held in my Luxembourg bank did not morph into €UR when the latter was introduced. i even had 12 months to decide in which currency to switch my vanishing DEM.

[ATF]

And for those with GBP held in Scottish banks or other deposit taking institutions, what becomes of that money if Scotland leaves and adopts a currency that is not the GBP?

these deposits will still GBP. the various non-DEM currencies i held in my Luxembourg bank did not morph into €UR when the latter was introduced. i even had 12 months to decide in which currency to switch my vanishing DEM.

This is a little different because the Scots have their own Pound which is backed by individual banks much like the Hong Kong dollar.

HKD is tied to the USD but I am not sure how strong the link is to the BOE for the Scottish Pound.

[chiang mai]

The issue currently is the uncertainty of the outcome, until that is resolved I expect GBP to continue to weaken. If the campaign for independence fails then it's business as usual, for me that means an initial strengthening followed by a slow decline. If the campaign succeeds, dunno. Either way, I'm happy to be mostly in THB at this moment.

[ferguston]

God, all of these anti-Scottish remarks have confirmed my YES vote.

[i claudius]

I do believe that if the Scots decide to go it alone they will be in deep poo in the years to come ,Salmond is in this for himself ,he has no masterplan ,if you really look at what he is saying ,to be blunt its lies and hopes that other countrys will fall into line with what he says ,its not going to happen ,but what is true is that it will be bad for everyone ,there will be no winners ,except him and those who are rich and it doesnt matter a jot what happens when your rich

[chris2004]

The papers today said that if the Scots vote YES then caMORON and Red Ed will have to go. What an opportunity !!! getting rid of Scotland, caMORON and Red Ed all in one go. VOTE YES.

[i claudius]

The problem though is that the pound will tank. Though the upside is that in the future labour will be virtually finished in Britain ukip v Tory in the future ?

[MJP]

The problem though is that the pound will tank. Though the upside is that in the future labour will be virtually finished in Britain ukip v Tory in the future ?

Perhaps Govt wants it to tank in the global race to the bottom.

[poohy]

personally couldn't give stuff about Scotland..... but I have large transfer in GBP arriving in late October.... already very concerned about that transfer rate

[MJP]

45 to the quid by December?

[Naam]

And for those with GBP held in Scottish banks or other deposit taking institutions, what becomes of that money if Scotland leaves and adopts a currency that is not the GBP?

these deposits will still GBP. the various non-DEM currencies i held in my Luxembourg bank did not morph into €UR when the latter was introduced. i even had 12 months to decide in which currency to switch my vanishing DEM.

This is a little different because the Scots have their own Pound which is backed by individual banks much like the Hong Kong dollar.

HKD is tied to the USD but I am not sure how strong the link is to the BOE for the Scottish Pound.

the fact that Scottish Pounds exist does not affect any GBP deposits held in Scottish financial institutions.

[CaptHaddock]

The reason that Scottish bank notes are different is that the Scottish (and Irish) banks retained the right to print their own notes when the English banks lost that right and they save the cost of paying the BoE for notes. Bank notes are what their name suggests - promissory notes of a bank. The Scottish notes are obligations of those individual banks not on the central bank and, as such, they are not legal tender. You are not obligated to accept Scottish bank notes, even in Scotland. If it goes independent, Scotland will have to set up its own central bank to issue legal tender bank notes and coins which will cost money. You can't have a country with no legal tender currency.

It's certainly possible to have a country without a currency of its own. Both Panama and Ecuador use the USD as their legal currency, to say nothing of Euroland whose countries do not have their own currency. However, it's a bad idea not to have your own currency as Greece and Spain could tell you.

[Naam]

The reason that Scottish bank notes are different is that the Scottish (and Irish) banks retained the right to print their own notes when the English banks lost that right and they save the cost of paying the BoE for notes. Bank notes are what their name suggests - promissory notes of a bank. The Scottish notes are obligations of those individual banks not on the central bank and, as such, they are not legal tender. You are not obligated to accept Scottish bank notes, even in Scotland. If it goes independent, Scotland will have to set up its own central bank to issue legal tender bank notes and coins which will cost money. You can't have a country with no legal tender currency.

It's certainly possible to have a country without a currency of its own. Both Panama and Ecuador use the USD as their legal currency, to say nothing of Euroland whose countries do not have their own currency. However, it's a bad idea not to have your own currency as Greece and Spain could tell you.

legal tender in the British Virgin Islands is the US-Dollar. the BVIs are of course not a country but considered British Overseas Territory.