Hong Kong Monetary Authority Steps in to Defend Its Weak Currency Amid Capital Outflow
Posted: Sat May 21, 2022 2:09 pm
The Hong Kong dollar continues to weaken as the United States starts its interest rate hike cycle. To maintain Hong Kong’s linked exchange rate system, the Hong Kong Monetary Authority (HKMA) made five purchases of HK$17.586 billion ($2.24 billion) in five days. Market participants expect that Hong Kong may have a net outflow of $100 billion by the end of 2023. Hong Kong has pegged its currency to the U.S. dollar since 1983, allowing a narrow range of HK$7.75 to HK$7.85 per U.S. dollar. This means HKMA would sell U.S. dollars when local currency needs support, or buy them when Hong Kong currency becomes too strong....
Source: https://www.theepochtimes.com/hong-kong ... 80790.html
Source: https://www.theepochtimes.com/hong-kong ... 80790.html