Government dismisses SNP currency plan

The UK government has dismissed plans from the Scottish National Party (SNP) to retain the use of the pound even if Scotland votes in favour of independence.

Chancellor George Osborne and chief secretary to the Treasury Danny Alexander stated the SNP is "tying themselves in knots" over proposals to keep the currency.

"The pound we share now works and it works well. Under independence all the alternatives are second best. So our question is – are you really saying second best is good enough for Scotland?" they asked in an article published on the UK government website.

Economics experts in the Fiscal Commission Working Group, which was set up by First Minister Alex Salmond, have claimed it would be possible for Scotland to continue using sterling even if it declares independence.

Scotland will go to the polls on September 18th 2014 to decide whether or not it should become independent or remain as part of the UK.

Last week, sterling dropped to a one-month low against the euro and also fell against the dollar.

Learn about the sterling and forex trading at City Index.

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