There are also a significant number of merchant banks (for example the British Linen Bank) and other financial institutions (including leading insurance companies and investment funds) headquartered in Edinburgh, which is one of the world's largest financial centres.
The Bank of England in Threadneedle Street, London is the U.K. equivalent of the U.S. Federal Reserve Bank. It issues currency in the U.K. on behalf of the government, under Royal Charters of 1694 and 1946. However, the Bank of Scotland, the Royal Bank of Scotland and the Clydesdale Bank have all, by long standing tradition, issue their own banknotes.
These banknotes are widely used throughout Scotland, and are generally accepted elsewhere in the United Kingdom, although strictly are not legal tender. Visitors are advised to exchange Scottish notes before leaving the U.K.
Exchange Rates are the same for Scottish and English notes.
Scottish banknotes are available in the following denominations:
To further confuse the visitor, other parts of the United Kingdom also issue their own banknotes, for example Northern Ireland, the Channel Islands and the Isle of Man.