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Pound volatility could still reap some benefits for UK spreadbetting and forex businesses
When things get out of hand politicians toughen up and take control of the situation. The UK treasury has set an example on Monday that sometimes politicians can act tough without any immediate pressure and released a statement on the state of UK’s debt should Scottish independence becomes reality.
The announcement clarified that if Scots decide on leaving the UK, the central institution will assume full responsibility for the debt issued by the UK government. However, the Scottish government will not be let off the hook and will be expected to contribute its ”fair share” as Alex Salmond has already pledged.
The move is of course aimed at discouraging any speculation with the associated risks arising from a debt-sharing spat between Scotland and the rest of the UK. The gilts market (UK’s bond market) has not been showing any signs of worry for now but according to BBC Scotland’s business editor Dougles Fraser, the announcement comes because some investors have posed direct questions to the UK Treasury and the Debt Management Office.
UK based speadbetters and forex brokerages can still extract some dividends from a Scottish independence vote. Increased pound volatility can make up for a relatively stable value over the past couple of years. That idea for now is a little far-fetched since the latest poll numbers are swiftly rejecting the idea of a Scottish independence. According to a poll released in December the Yes vote stands at 27% against 41% of the voters that resoundingly reject the idea.
Meanwhile Bank Of England’s Canadian governor Mark Carney has stated that he is looking forward to meet avid fighter for Scottish independence and Scottish first Minister Alex Salmond. The offices of both parties are working to arrange a meeting in the near term. We are looking forward to cover this story, as it will undoubtedly shed some light on the currency question for Scottish voters.