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BoE's Carney: Independent Scottish central bank would need access to sterling reseves

FXStreet (Łódź) - When asked about the Scottish independence referendum BoE governor Carney suggests that a free flow of people, capital, and goods would be necessary between Scotland and UK if Scots decided to keep the pound.

• "Sterlingization needs credible institutions, deposit insurance."

• The central bank is not necessarily a credible lender of the last resort if it is not a currency issuer, Carney says.

• An independent Scottish central bank could need access to sterling reserves of about 25% of GDP in order to be a credible lender of last resort.

• "Seignorage is not an option in unilateral currency adoption."

• Division of debt and reserves would be a subject to negotiation.

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