1. What is the Linked Exchange Rate System (LERS)?
The Hong Kong dollar is pegged to the US dollar by a currency board. This obsolete arrangement is also used by other economies such as Bermuda, Antigua and Barbuda, and the Cayman Islands.
The yuan will eventually be a feasible currency for Hong Kong to peg its dollar against, in place of the US dollar, said John Greenwood, known as the "father of the Hong Kong-dollar peg".