What would happen in the event that London broke away from the UK and became an independent nation with its own currency? Or if Germany left the euro? Would financial independence jumpstart regional economies, or prove to be a costly mistake?
Some regions considering breakaway currencies do so from a position of strength: an economically important region with unique characteristics like São Paulo in Brazil might do so to capitalise on existing strengths.
Others might consider launching a breakaway currency from a position of weakness: a poor region like Sicily in Italy might consider a new currency to strengthen its growth prospects.
In collaboration with Dr Robert Hancké of the London School of Economics, Australia’s No.1 retail FX provider,1 IG, has considered...
Which regions around the world might consider launching their own currencies?
What would happen if they did?