IN preparing for a new referendum we must ensure not make the big mistake we made when we lost the last one, which was our uncertainty and ambiguity over “currency”. It would be extremely foolish of us if we did the same thing again.
So let us get this sorted now, no more hesitating and prevaricating, let our message go out crystal clear and strong so that there is no room for the Unionist media to inject “Project Fear” into any gaps we leave open.
There are four things which need to be clear and understood for the Scottish electorate on this issue:
(a) What will be the “value” of the Scottish currency? No currency has any intrinsic “value”; the only economic value a currency can have is its exchange value, which it gets from the goods and services it represents in the market. If Scotland has, and can maintain an “average” balance of trade in international markets then it will have it will have an average level of exchange value on its currency. All the evidence shows that Scotland will have a much higher than average balance of trade, so this shows that its domestic currency will have a higher than average exchange value.
READ MORE: How Yes groups and activists reacted to the indyref2 bill announcement
(b) Will a Scottish currency be able to maintain its value? The Scottish currency, unlike the pound, will be a domestic currency only, like most currencies. It will not be used for international trade or used for international money markets or open to money speculators.
As such the Scottish currency will maintain its high exchange value as long as the Scottish economy maintains its current level of efficiency.
(c) Will the Scottish currency be safe? No currency is entirely safe. The pound sterling is currently in a very weak position. However, as a domestic currency under strict regulation and supply control, and not open to speculation, the Scottish currency will be much safer than the pound sterling.
(d) If all my money is held in a Scottish regulated bank in Scottish currency, will I be able to go on holiday abroad and use my card to get euros or dollars when I need them? Yes, that will not be a problem. The process of exchange will be different because the exchange will be done through the Scottish central bank, but you will see no difference. You will put in your card and ask for dollars or whatever and you will get them out. The only difference is that you will not be charged for the currency exchange. The same principle will apply to money being paid to you into your bank from England or any other foreign currency – it will go through the central bank and go into your bank as Scottish currency.
Now the Scottish Government must start addressing this issue. They must make it clear that we will be installing the new Scottish currency as soon as practical after political independence and they must distance themselves from all the Andrew Wilson nonsense about six tests.
Every currency needs its users to have confidence in it and so will the Scottish currency. Therefore, The Scottish Government, which will be the issuing authority, must have faith in that currency if it expects others to have such trust in it.
Andy Anderson
Saltcoats
I SEE my regrettable MP Kenny MacAskill is still making a nuisance of himself (MacAskill hits out over ‘lack of indyref2 groundwork’, September 5). I cannot think what the constituency organisation was thinking of putting this man forward.
READ MORE: Kenny MacAskill hits out over ‘lack of indyref2 groundwork’
There was another candidate – a young man, personable, fast on his feet and articulate, infinitely preferable to McAskill. I am sure there are many other party members in this constituency gey scunnert wi MacAskill’s cantrips.
Wi freens lyke MacAskill wha haes need of faes?
R Mill Irving
Gifford, East Lothian
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