Billionaire investor George Soros has suggested that an independent Scotland would be better off joining the eurozone, rather than creating its own currency or pursuing monetary union with an unwilling Bank of England.
“I don’t think that Scotland leaving and becoming independent and yet remaining part of sterling and the Bank of England is actually practical,” the Hungarian-born hedge fund manager said at the European Council on Foreign Relations in London.
Creating a new Scottish currency, on the other hand, would be “very inefficient and potentially dangerous because markets, currencies can be attacked and you can speculate against currencies,” he added.
“The alternative would be for Scotland to seek membership of the European Central Bank and then it would be part of the eurozone.”
Soros famously made $1bn betting against sterling in 1992, when the British government was forced to withdraw the pound from the European exchange rate mechanism. His Quantum Endowment fund had its second-best year ever in 2013, adding $5.5bn to Soros’s fortune.
Asked about the consequences of a possible UK withdrawal from the EU, Mr Soros said: “I will leave it to the British business community, particularly the multinationals that set up factories here as an entry point into the Common Market to explain to the British public what they stand to lose.
“But in one word – jobs.’’
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