The head of the Bank of England will this week warn Alex Salmond about the dangers of a separate Scotland keeping the pound.
Bank Governor Mark Carney is expected to compare the ‘currency union’ between the rest of the UK and an independent Scotland proposed by the SNP to the crisis-hit Eurozone when he meets the First Minister for the first time later this week.
If he secures a yes vote in September’s referendum, Mr Salmond claims Scotland could keep the pound, with the Bank of England continuing to represent Scots and make key decisions on issues like interest rates.
But it has emerged that the Canadian bank chief has major concerns about whether formal currency-sharing unions can ever work between countries.
And he has confirmed that he intends to raise these concerns when he meets the SNP leader and delivers a major speech in Edinburgh on Wednesday.