Funny money

I'm still bemused by what happens to hard cash in Scotland if there's a Yes vote. The Governor of the Bank of England has said there can be no currency union; the independent Bank of England currently underwrites banks in Scotland and Northern Ireland.

The daily churn of dosh, for cash machines and more, is handled by members of the Bank of England Note Circulation Scheme; they are currently G4S Cash Solutions UK Ltd, Post Office Ltd, Vaultex UK Ltd (a joint venture of Barclays Plc and HSBC Plc), and yes, Royal Bank of Scotland Group Plc. The rules say they buy new notes (to replace damaged ones) at "face value" from the Bank of England. Banks, building societies, ATM operators and large retailers source notes from one or more of the NCS members, and from one another. They typically pay "face value" plus a commercially negotiated fee for processing and delivery - would those rates be different for an independent Scotland ?

In most countries round the world, it is only governments, through their central banks, that issue currency. But in Scotland three banks - Bank of Scotland, Clydesdale Bank and The Royal Bank of Scotland - are still allowed to issue banknotes.  In Northern Ireland, the authorised banks are Bank of Ireland, Danske Bank (formerly known as Northern Bank), First Trust Bank, and Ulster Bank.

Strictly, no British banknote, from England, Scotland or Northern Ireland is "legal tender", though they are, of course, legal currencies.

RBS have clearly irritated the Wee Eck, so maybe De La Rue in Basingstoke will get an order from Bank of Scotland and Clydesdale to get printing their notes in a big way. I think traders south of the new border will quickly be less inclined to accept them, and "face value" might change over time; hey, but what do I know ?