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: