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View Full Version : Scotland has limited lender of last resort options in an informal currency union



NewsBot
08-Aug-14, 21:40
The Caithness Business Index (http://www.caithness-business.co.uk) has posted the following article:

Scotland has limited lender of last resort options in an informal currency union



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If an independent Scotland chooses an informal currency union (called ‘dollarization' or 'sterlingization') as Plan B, its financial institutions cannot be sure they will have access to emergency liquidity in the next financial crisis. This is likely to have important consequences for Scotland's financial sector, and therefore its capacity to export financial services, its new balance of payments and general economic prosperity. [Read Full Article (http://www.caithness-business.co.uk/article.php?id=5177)]