A THREE-YEAR transition after a vote for independence would be needed to create a new Scottish currency a leading expert has said in a keynote paper for a think tank.

In How to Make A Currency - a practical guide published by Common Weal, Peter Ryan, who was involved in setting up the Euro, sets out some of the most detailed analysis yet by the independence movement since 2014 on currency options.

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Under the plan a Scottish pound would replace Sterling,and a Scottish Central Bank taking over from the Bank of England as the lender of last resort.

However, people would be allowed to convert bank accounts from Sterling to a Scottish pound during the three-year transition period.

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Ryan said the three-year timescale for the creation of an independent Scotland, twice as long as that set out in the SNP's White Paper for 2014, was needed to deliver a smooth changeover from Sterling to a Scottish pound.