Question reference: S6W-05253
- Asked by: Dean Lockhart, MSP for Mid Scotland and Fife, Scottish Conservative and Unionist Party
- Date lodged: 23 December 2021
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Current status: Answered by Kate Forbes on 11 January 2022
Question
To ask the Scottish Government whether it remains committed, in an independent Scotland, to retaining the pound sterling within a formal monetary union with the rest of the UK unless certain tests are met, and, if so, whether it will provide a breakdown of what those economic tests are.
Answer
Scotland will continue to use the pound sterling at the point of independence, establishing an independent Scottish currency as soon as practicable through a careful, managed and responsible transition when an independent Scottish parliament chooses to do so.
The SNP Growth Commission recommended a transition to a separate Scottish currency after six economic tests were met:
- Fiscal sustainability;
- Central Bank credibility and stability of debt issuance;
- Financial requirements of Scottish residents and businesses;
- Sufficiency of foreign exchange and financial reserves;
- Fit to trade and investment patterns;
- Correlation of economic and trade cycle.