HKMA CEO Strongly Defends US-Dollar Peg Amid Concerns

Economy

1 year ago

News sources:

Credited from: SCMP

The CEO of HKMA, Eddie Yue Wai-man, firmly rejected any change to the Hong Kong dollar's peg to the US dollar, which has been in place for 41 years.
Yue emphasized that there is no intention to alter the Linked Exchange Rate System (LERS), despite rising speculation following geopolitical tensions.
He pointed out that the market has been functioning smoothly under the current peg of HK$7.80 per US dollar, even with various critics voicing concerns.
Yue stressed the importance of the peg for Hong Kong's economy, noting that the city has substantial foreign reserves exceeding US$420 billion, enhancing financial stability.
The HKMA continues to receive endorsements from market experts who regard the LERS as the most effective monetary arrangement for maintaining economic stability in Hong Kong.

For the full article, visit South China Morning Post.