Head of Hong Kong’s central bank defend HKD USD peg


The Hong Kong Monetary Authority is HK’s ‘central bank’.

It maintains a peg for the HK dollar against the USD, since 1983,

  • trades within a range of 7.75 to 7.85 for USD/HKD

Head of the HKMA Eddie Yue:

  • currency peg “is actually doing Hong Kong great in terms of providing the needed exchange rate stability, especially through the cycles and during periods of uncertainty”
  • It would be up to the government, through fiscal policies, to stimulate economic growth while the HKMA would focus monetary policies on steadying the Hong Kong dollar against the greenback.
  • Interest rate hikes would not hurt borrowers, particularly those with mortgages as the default ratio was low at 0.05% and loan to deposit ratios are on average only 50%

Yue spoke with CNBC, link for more.

Like just about everywhere else the HKD has been under pressure against the USD:



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