Mark Carney’s (pictured) speech in Edinburgh has come amid continuing speculation over the Scottish government’s plan to keep the pound under independence.
SNP ministers would also want to retain services of the Bank of England as part of a currency union, the BBC reports.
The UK government has said such an agreement would be “unlikely”.
Mr Carney’s visit comes ahead of the 18 September independence referendum, in which voters will be asked the yes/no question: “Should Scotland be an independent country?”
In its White Paper blueprint for independence, the Scottish government said a currency union agreement was vital in letting companies go about their business, while sterling would also benefit from Scotland’s continued involvement because of assets such as North Sea oil and gas.
But UK ministers have said such a deal would result in Scotland effectively having to hand over control of interest rates and borrowing levels to a foreign country.
Mr Carney, who has agreed to provide “technical, objective, dry analysis” of the issues ahead of the referendum, told the BBC last week: “There are issues with respect to currency unions. We’ve seen them in Europe.
“It’s one of the factors that affects, actually, the outlook for the UK economy, has affected us over the last five years, affects us going forward, the challenges of having a currency union without certain institutional structures.”
