IMF warns of market fallout from a Scottish split
The International Monetary Fund has waded into the debate over Scottish independence, saying that a Yes vote in next week’s referendum could lead to market turbulence.
“The main immediate effect is likely to be uncertainty over the transition to potentially new and different monetary, financial and fiscal frameworks in Scotland,” William Murray, an IMF spokesman, told reporters.
Recent opinion polls have indicated that next Thursday’s vote will be very close. Economic officials in Washington appear to have only just woken up to the real possibility of a Yes vote – having assumed it was unlikely. They point to the risk of a financial shock and resulting uncertainty that might hurt investment on both sides of the border.
One of many issues a newly independent Scotland would have to resolve is its membership of the IMF. As a new country, Scotland would first have to apply to join, in order to gain the currency backstop the IMF provides.
At present, the UK has its own executive director at the IMF, and is one of the top five voting powers. It has 4.29 per cent of the total IMF vote – the same as France.
Source: FT
