NICOLA Sturgeon has admitted she would ask Scots to vote for independence without them knowing when the country would change its currency.

The First Minister said there would be no “fixed timescale” for adopting a Scottish pound under her plans.

She said Scotland would continue to use sterling after a Yes vote and only switch to a new Scottish pound “when the economic conditions were right”.

It means the Bank of England would continue to determine monetary policy and interest rates for Scotland indefinitely.

The ambiguous timetable reflects the different positions of the SNP and Green partners in the Scottish Government, with the latter wanting an immediate switch to a new currency.

READ MORE: SNP and Greens disagree over Indy currency plans in final TV debate

Ms Sturgeon said more details would be included in a new Government paper on the economic and currency aspects of independence.

She said the third instalment in the Building a New Scotland prospectus would be published after the SNP’s conference in Aberdeen this weekend.

The timing means delegates - many of whom want a more rapid and ambitious move to a new currency - will not be able to debate them.

The FM said the recent turmoil in the financial markets underlined "the importance of us as we plan for independence of being careful, being responsible, and understanding the detail of what we're seeking to do”.

Speaking on BBC Radio Scotland, she said: “Next week, in the days after our conference, we will set out the next of the Building a New Scotland papers that will look at specifically economic issues.”

She said the paper would look at currency and the economic transition under independence.

She said: “In terms of setting up a central bank, we would start that process as soon as Scotland had voted for independence, and that central bank would be the provider of advice to the Scottish Government on these matters. 

“It would be the lender of last resort for our financial services industry, it would require reserves that could cover these limited functions in that first period. 

“We have said - and this is my party's position - that we would move from using the pound.

“We would continue to use the pound after independence. 

“It’s Scotland's currency as much as it is the currency of the rest of the UK, an internationally traded currency.

“Obviously because of the actions of the UK Government it’s worth significantly less than it was just a few weeks ago, and we would move to a Scottish pound when the economic conditions were right and we would be advised by the central bank.”

Asked how long that would be, Ms Sturgeon said: “We'll set out the detail of this when we publish the paper, but it's important that it is guided by principles rather than fixed timescales. So the economic conditions, the building of the capacity in the central bank.”

Asking if a Scottish central bank would be able to vary interest rates while Scotland used the pound, Ms Sturgeon said: “Not while we're using the pound.

“The Bank of England would continue to be in charge of monetary policy. 

“But as we move to a Scottish pound, the Scottish central bank would take up many of these functions. So this would be a transition.”

The First Minister accepted a Scottish central bank would only have similar borrowing powers to the Bank of England - one of the SNP’s main economic arguments for independence amid the cost-of-living cris - after a Scottish pound was created, not before.

She said: “It would have similar powers if we were using a Scottish currency. And again, we'll set out the functions, the details of this, in this paper.

“One of the lessons of the last couple of weeks, which is something we've always taken seriously but this has been underlined, is the importance of responsibility in these matters of good planning, of being very clear about what you're seeking to achieve.

“People think the financial markets are abstract, but we've seen very clearly the impact on real people when the financial markets lose confidence. 

“So that underlines the importance of us as we plan for independence of being careful, being responsible, and understanding the detail of what we're seeking to do.”

Ms Sturgeon's comments are likely to stir up discontent in some parts of her party, who see independence from the Bank of England and the UK economy as a fundamental reason for having independence in the first place.

Under the First Minister's plans, Indyref2 would be held on 19 October 2023 if its legally possible.

The UK Supreme Court is due to start hearing arguments next week on whether Holyrood can hold such a vote without Westminster consent.

If it rules Holyrood is unable to proceed, Ms Sturfgeon has said she would be forced to fight the next general election as a 'de facto' referendum on the single question of independence.