As rising US interest rates and economic pressures fuel speculation over Hong Kong’s monetary policy, the chief architect behind its currency’s peg to the US dollar defends the link as the city’s best ...
Scrapping it would shake confidence, jeopardise reliability and introduce currency volatility, one of the most significant risks in investment Whenever interest rates climb, so do calls to unpeg the ...
Hong Kong’s finance chief has sought to defend the city’s currency peg to the US dollar in a meeting at the World Economic Forum in Davos, saying it was important to offer certainty for the ...
As an investor, I believe the dollar peg eliminates one of the most significant risks in investment: currency volatility. For a financial hub such as Hong Kong, where capital flows freely ...
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Central banks typically raise short-term interest rates to defend currency pegs. Higher interest rates, however, often lead to a credit crunch and an output contraction. We model this trade-off in an ...