Caribbean Economist Marla Dukharam details the different currencies used across the Caribbean Islands, for example, the Cayman Islands, with a population of 60,000, with its own currency.

Across the Island states, there is a full range of currency options as states have chosen free-floating, fixed exchange, currency boards and currency unions.

Marla uses this "post-colonial" backdrop to consider the best currency option for an independent Scotland.

Marla highlights that having an independent currency offers a significant policy tool, especially for open economies heavily reliant on trade (exports and imports constituting a substantial part of their GDP). An independent currency allows for more effective economic management, tailored to the nation's specific needs and circumstances.

Using another country's currency can import their inflation and interest rate policies, which may not align with the importing country's economic conditions. For instance, monetary policy changes in the U.S. would directly affect a country using the U.S. dollar, irrespective of its own economic state.

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