HK dollar re-peg to RMB tipped before end of 2011

BarCap's Peter Redward argues that the Hong Kong dollar peg could be switched to the renminbi very quickly, preceded by a 10% appreciation of the Chinese currency.
Peter Redward: 'frog in boiling water'
Peter Redward: 'frog in boiling water'

The Hong Kong government could re-peg the city’s currency to the Chinese renminbi before the end of next year, a packed conference hall was forewarned yesterday.

Peter Redward, head of emerging Asia research at Barclays Capital, made the bold claim at a panel discussion on the likely impact of RMB liberalisation on foreign exchange markets. He also forecast that the renminbi could appreciate by 10% against the US dollar over the next year.

Redward spoke at a seminar on the internationalisation of the renminbi organised in Hong Kong by AsianInvestor and FinanceAsia

Asked by audience member Charles Han, Hong Kong-based head of FX trading at Newedge Financial, what...

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