The pound has shed some 6% since the highs of close to 1.72 were reached back in July.
If the poll is to be believed, we are now a mere 10 days from what could be a truly historical moment. Alex Salmond has stated that 26 March 2016 will be declared Independence Day should ratification prevail.
Clearly one of the core issues lies with the currency that Scotland would use in the event of independence. Mr Salmond has consistently insisted that the newly independent country will continue to use the pound in a currency union. This has been ruled out by Westminster, however, mainly because it is perceived as unreasonable that taxpayers in Wales and England should support Scotland’s financial sector and public deficit.
There is an option to simply continue to use sterling without the backing of the Bank of England. Bear in mind that having the central bank available as a lender as a last resort is only really pertinent during a significant financial crisis. Mark Carney has pledged to fulfil this role in the transition period, but what would a transition period look like and how long would it actually be expected to last?
The prospect of exiting the pound could trigger bank-runs as savers attempt to protect their deposits. Banks based in Scotland are widely expected to move down south; this significant flow of capital leaving Scotland would clearly do no good to the Scottish economy.