Mark Carney to meet Scottish leader Alex Salmond to discuss currency debate

Scotland's First Minister will have face-to-face talks with the latest Bank of England governor for the first time

Mark Carney is due to meet with Scottish premier Alex Salmond in Edinburgh today to discuss the possibility of a currency union if Scotland becomes independent.

Scotland's First Minister will have face-to-face talks with the latest Bank of England governor for the first time.

Mr Carney is also giving a speech in the capital, in which the issue of a currency union between an independent Scotland and the rest of the UK will be addressed

Mr Salmond's Scottish Government has put forward plans for Scotland to retain the pound if the country votes for independence in September's referendum, establishing a "Sterling zone" with the UK.

UK ministers, including Chancellor George Osborne, have previously cast doubt on whether this is achievable, stating it is unlikely the UK Government would back such a move.

But Mr Salmond said yesterday that Mr Carney's predecessor at the Bank of England, Sir Mervyn KIng, had suggested the Treasury could change its approach in the event of a Yes vote.

The First Minister told how he had met Sir Mervyn "a couple of years back", and added: "The first thing he said to me was 'your problem is what they say now', meaning the Treasury, 'and what they say the day after a Yes vote in the referendum are two entirely different things'."

Mr Carney, who took over as Governor of the Bank of England in July, has already warned of "challenges" of adopting a shared currency without having "certain institutional structures" put in place.

He told the BBC last week that there were "issues with respect to currency unions".

He said: "We've seen them in Europe. It's one of the factors that affects, actually, the outlook for the UK economy, has affected us over the last five years, affects us going forward, the challenges of having a currency union without certain institutional structures."

A spokeswoman for Mr Salmond said yesterday that Scottish Government officials had already had "technical discussions" with counterparts at the Bank of England, adding these had assisted the Fiscal Commission that ministers established with its work "including the publication of their report on a macro-economic framework for an independent Scotland, which includes proposals for a shared Sterling area".

Additional reporting agencies

PROMOTED VIDEO
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

BA/PM,EMIR/Dodd-Frank,London,£450-650P/D

£450 - £650 per day + competitive: Orgtel: My client, a leading bank, is curre...

Senior Analyst - ALM Data - Banking - Halifax

£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...

Java developer - Banking - London - Up to £600/day

£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...

Liquidity Reporting-Basel III-LCR-Bank-£400/day

£400 per day + competitive: Orgtel: Liquidity Reporting - Basel III - LCR - Ba...

Day In a Page

Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain
Ebola epidemic: Plagued by fear

Ebola epidemic: Plagued by fear

How a disease that has claimed fewer than 2,000 victims in its history has earned a place in the darkest corner of the public's imagination
Chris Pratt: From 'Parks and Recreation' to 'Guardians of the Galaxy'

From 'Parks and Recreation' to 'Guardians of the Galaxy'

He was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star
How live cinema screenings can boost arts audiences

How live cinema screenings can boost arts audiences

Broadcasting plays and exhibitions to cinemas is a sure-fire box office smash
Shipping container hotels: Pop-up hotels filling a niche

Pop-up hotels filling a niche

Spending the night in a shipping container doesn't sound appealing, but these mobile crash pads are popping up at the summer's biggest events
Native American headdresses are not fashion accessories

Feather dust-up

A Canadian festival has banned Native American headwear. Haven't we been here before?
Boris Johnson's war on diesel

Boris Johnson's war on diesel

11m cars here run on diesel. It's seen as a greener alternative to unleaded petrol. So why is London's mayor on a crusade against the black pump?
5 best waterproof cameras

Splash and flash: 5 best waterproof cameras

Don't let water stop you taking snaps with one of these machines that will take you from the sand to meters deep
Louis van Gaal interview: Manchester United manager discusses tactics and rebuilding after the David Moyes era

Louis van Gaal interview

Manchester United manager discusses tactics and rebuilding after the David Moyes era
Will Gore: The goodwill shown by fans towards Alastair Cook will evaporate rapidly if India win the series

Will Gore: Outside Edge

The goodwill shown by fans towards Alastair Cook will evaporate rapidly if India win the series
The children were playing in the street with toy guns. The air strikes were tragically real

The air strikes were tragically real

The children were playing in the street with toy guns
Boozy, ignorant, intolerant, but very polite – The British, as others see us

Britain as others see us

Boozy, ignorant, intolerant, but very polite
How did our legends really begin?

How did our legends really begin?

Applying the theory of evolution to the world's many mythologies
Watch out: Lambrusco is back on the menu

Lambrusco is back on the menu

Naff Seventies corner-shop staple is this year's Aperol Spritz