HK currency peg

Hong Kong’s peg to US dollar still ‘appropriate’

Rising inflation is testing Hong Kong’s peg to the US dollar, but our readers don’t expect any policy change until the renminbi is freely convertible.
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HKMA's Norman Chan says US dollar is not in danger of long-term depreciation (AFP)
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<div style="text-align: left;"> HKMA's Norman Chan says US dollar is not in danger of long-term depreciation (AFP) </div>

We asked our readers last week when they thought Hong Kong would give up its currency peg to the US dollar, and most said that the special administrative region will wait for the renminbi to become freely convertible.

Hong Kong Monetary Authority chief Norman Chan yesterday weighed in on the debate, supporting the peg to the US dollar and rejecting calls for a switch to the renminbi or a basket of currencies. A day earlier, financial secretary John Tsang wrote a blog entry in which he said the US dollar link was still the most appropriate mechanism for managing Hong Kong’s exchange rate.

The two officials were...

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