By Jonathan Davies
The chairman of HSBC has warned of a "parlous state" and "capital flight" if Scotland votes for independence in less than a month's time.
Writing in the Telegraph, Dougles Flint said the currency union with the UK is the "anchor" of Scotland's financial success. One of the key debates on Scottish independence has been over the currency the country would use. Mr Flint believes that “the transition from the existing currency union would be complex and fraught with danger".
He said independence “could prompt capital flight from the country, leaving its financial system in a parlous state”. What that means is that due to uncertainty over currency and the economy as a whole, businesses take themselves and their money out of the country.
It's important to understand that the HSBC's official line on Scottish Independence is that it is a matter for the Scottish people to decide. As a Scot himself, Flint was writing in a personal capacity.
The issue of currency remains one of the biggest challenges the Scottish government will have to overcome if it is to convince the majority of the Scottish public that independence is the right move for the country.
Of course, the three main UK political party leader, David Cameron, Nick Clegg and Ed Miliband, have all ruled out the possibility of using the pound in a currency union with the UK, in much of the same way that the eurozone works. So that option appears to be ruled out.
Earlier this week, it was reported that the Scottish government may be looking to continue to use the pound without the support of the Bank of England.
The other option available to the Scottish government would be to join the eurozone. But that isn't a clear cut as it seems. All member states must unanimously agree to a new nation entering, and some leaders are opposed to the idea of Scotland joining.
The Scottish people take to the polls on 18 September to vote on independence.
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