Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

HSBC: Scottish independence would prompt 'capital flight'  Join our daily free Newsletter

MENAFN - Arab News - 23/08/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab News) LONDON: The chairman of banking giant HSBC has warned that uncertainty over the economic future of Scotland could lead to 'capital flight' if it votes to leave the United Kingdom next month.

Writing in British daily The Telegraph HSBC head Douglas Flint said the currency union with England was an 'anchor' for Scotland's stability and leaving it 'would be complex and fraught with danger.'

Flint himself a Scot is the most high-profile business leader to speak out against Scotland leaving the United Kingdom before the September 18 vote.

'Uncertainty over the Scotland's currency arrangements could prompt capital flight from the country leaving its financial system in a parlous state' he wrote in the newspaper.

Currency has been a major part of the debate with the Scottish government saying it would seek to remain part of a formal currency union even as a separate state. Westminster has ruled out such a deal.

A poll published this week found that the majority of English people oppose Scotland continuing to use the pound if it votes to become independent.

If Scotland does back independence it could also choose to set up its own currency attempt to join the euro or continue to use sterling without the Bank of England as lender of last resort.

'In all these circumstances the transition from the existing currency union would be complex and fraught with danger' said Flint.

Introducing a new currency 'would be an enormous challenge for an independent Scotland' and it would take 'many years for the country to establish its credibility' he said.

Choosing an informal link to sterling would also place 'enormous pressure' on Scotland's finances and leave it with no room to maneuver in times of trouble he said.

'In all of these scenarios Scotland's borrowing costs and those of its businesses and consumers would rise at least in the near term' Flint added.

Flint reportedly donated 25000 (41500 31200 euros) to the campaign for a united Britain last year.

 


Arab News




  MENA News Headlines
 Mar 1 2015 - Nbad- USD48t needed to meet global power demandMENAFN
(MENAFN) Energy demand in the Gulf to triple in the next fifteen years far outstripping today's supply, a report released by National Bank of Abu Dhabi (Nbad), Gulf News reported.It figures out that ...

 Mar 1 2015 - Bahrain, Russia to boost trade tiesMENAFN
(MENAFN) The Bahrain side of the Bahraini-Russian Joint Business Council held its first meeting, under the chairmanship of BCCI Chairman, Saudi Gazette reported.However, hailing the relations between ...

 Mar 1 2015 - Abu Dhabi's Eagle Hills plans new USD80b Egyptian cityMENAFN
(MENAFN) Abu Dhabi-based developer Eagle Hills is set to build a new city worth USD80 billion near Cairo, Arabian Business reported.The new city is set to include an airport, hotels, and a mall as ...

 Mar 1 2015 - S. Korean President Starts Mideast TourQatar News Agency
(MENAFN - QNA) South Korean President Park Geun-hye left for Kuwait on Sunday on a nine-day, four-nation trip to the Middle East expected to focus on wide-ranging economic cooperation beyond energy ...

 Mar 1 2015 - Car bombs kill27 in BaghdadArab News
(MENAFN - Arab News) BAGHDAD: Car bombs targeting a crowded market and Shiite militia checkpoints north of Iraq's capital killed 27 people Saturday authorities said as the country's prime minister ...

 Mar 1 2015 - Kuwait reopens Yemen embassy in AdenArab News
(MENAFN - Arab News) KUWAIT CITY: Kuwait decided to reopen its Yemeni embassy in Aden instead of the militia-controlled capital Sanaa.'In the framework of supporting constitutional legitimacy in ...

 Mar 1 2015 - Saudi- 3000 vacanciesto be availablein next episodeof 'Jobs on Air'Arab News
(MENAFN - Arab News) There will be 3000 job opportunities for unemployed young male and female Saudis as well as for foreigners during the tenth session of 'Jobs on Air' on Al Danah television ...

 Mar 1 2015 - Saudi- Al-Samaani: Judicial system impartialArab News
(MENAFN - Arab News) Saudi Arabia's justice system is based on the provisions of Islamic law derived from the Holy Qur'an and the Sunnah (tradition) of the Prophet (peace be upon him). This ensures ...

 Mar 1 2015 - Saudi- Many Madinah sites need better careArab News
(MENAFN - Arab News) Several residents in the city of Madinah have drawn attention of the competent authorities toward multiple Prophet's heritage sites and relics in the area including wells ...

 Mar 1 2015 - Small to medium companies not fit to employ Saudi womenArab News
(MENAFN - Arab News) Business sectors in the Kingdom with less than 500 workers are not fit to employ women at least according to assessments made by the Ministry of Labor's adviser.In his report the ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help