THE Governor of the Bank of England has confirmed that a currency union between an independent Scotland and the rest of the UK would be "economically possible".
However, Mark Carney also clarified that that would not mean either party would see it as politically desirable.
Carney made the claim while speaking at a Treasury committee meeting ahead of the SNP's Growth Commission publication.
When asked by MPs on the committee whether he believed a currency union also required a political union, he replied: "No, from the strict economics it doesn't".
He went on to say that he believed a succesful currency union would require "an element of fiscal union" as well as "having a form of financial market union, banking union, capital market union - all the components that European monetary union is still trying to fully construct"
The SNP report is expected to recommend that an indpendent Scotland should transition to its own currency, rather than maintain a currency union.
During the independence referendum in 2014 a formal currency union was then ruled out by former Chancellor George Osbourne.
Uncertainy over what currency an independent Scotland would use allegedly played a role in securing a No vote.
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