The governor of the Bank of England has warned that a currency union between England and an independent Scotland would be "incompatible with sovereignty".

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He said that there had to be three successful components to a successful currency union.

These were the free movement of goods and services across the different parts of the currency, a banking union underpinned by common institutions such as a central bank, and elements of shared fiscal arrangements.

"You only have to look across the continent to look at what happens if you don't have those components in place," he said. "A currency union is incompatible with sovereignty."