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Here are all the countries that don’t have a currency of their own

A demonstrator holds toilet paper made from fake U.S. dollars during a protest against Turkey's Prime Minister Tayyip Erdogan and his ruling Ak Party (AKP) government in Ankara February 27, 2014. An audio recording purporting to be of Erdogan giving his son business advice has been published on YouTube, following one earlier in the week that fuelled a corruption scandal and unnerved markets. Erdogan said a similar post on the video-sharing site YouTube on Monday, allegedly of him telling his son Bilal to dispose of large sums of cash as a graft investigation erupted, had been faked by his political enemies. REUTERS/Umit Bektas (TURKEY - Tags: POLITICS CIVIL UNREST CRIME LAW) - RTR3FSFR
Reuters/Umit Bektas
Not quite what we mean by printing money.
  • Kabir Chibber
By Kabir Chibber

Journalist

Published Last updated on This article is more than 2 years old.

As Scotland prepares to vote on independence on Sept. 18, the future of its currency has taken center stage.

For the moment, Scotland prints its own notes and uses the British pound, which is controlled by the Bank of England. (Follow?) In the event of independence, Scotland wants to continue to use the pound as part of a negotiated currency union. All three of the UK’s major parties have ruled this out.

Nonetheless, the most likely outcome of a “Yes” vote involves Scotland using the pound anyway. On option: the scenario dubbed “sterlingization,” in which the world’s newest state would have pound notes and coins but no control over its monetary policy. The head of the Bank of England—who, just to make things more confusing, is Canadian—has said that if Scotland were to adopt the British pound on its own, it would need huge reserves of the currency—around 25% of its GDP, or £36 billion—to convince the rest of the world it can credibly act as a lender of last resort in the event of crisis.

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