Hong Kong Dollar

Hong Kong not gaining from peg

Peg is wiping out productivity gains of diligent middle class. Photo: Bloomberg

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.

Monday, 6 May, 2013, 2:55am

'Made in America' means added pain for Hong Kong

'Made in America' means added pain for Hong Kong

For the past 10 years, Hong Kong's economy has been boosted by twin external superchargers. Now, both are in danger of breaking down.

2 May 2013 - 3:47am 13 comments

Pegging Hong Kong dollar against yuan 'could take years'

The peg to the US dollar has served Hong Kong for nearly 30 years, and replacing it with the yuan "could take many years"

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".

30 Apr 2013 - 4:48am 7 comments

Officials caused property crisis

Donald Tsang curtailed land supplies and instituted the land application system which favoured large property developers. Photo: K.Y. Cheng

Repeated interventions in the Hong Kong property market by officials, particularly former chief executive Donald Tsang Yam-kuen and Financial Secretary John Tsang Chun-wah, have caused havoc for ordinary Hong Kong citizens.

9 Mar 2013 - 2:31am

Exchange Fund looks to yuan, emerging markets

Monetary Authority chief executive Norman Chan says the authority will negotiate with the mainland for higher investment quotas. Photo: Edward Wong

The city's Exchange Fund, which had its second-best investment gain on record in 2012, will invest more in yuan-denominated bonds and shares this year.

15 Jan 2013 - 5:42am

HKMA prays for deliverance from loose money

The Hong Kong dollar is hardly under attack at the moment. Photo: Bloomberg

If they are not quite down on their knees at the Hong Kong Monetary Authority (HKMA), there is a least a silent prayer emanating from that tall office block with the set of roof claws from the movie Alien.

8 Jan 2013 - 7:45am

Cash dam reopened to flush out hot money

The Monetary Authority has been pouring Hong Kong dollars into the market to maintain the city's currency peg. Photo: AFP

The city's de facto central bank again sold down the Hong Kong dollar yesterday to maintain the currency peg to the US dollar as so-called hot money continued to pour in.

22 Dec 2012 - 2:36am

Latest US easing prompts HKMA inflation warning

Latest US easing prompts HKMA inflation warning

The latest round of US monetary easing has put Hong Kong's de facto central bank on high alert over the outlook for inflation as the prospect of more speculative money finds its way into the city's economy.

14 Dec 2012 - 3:00am

HKMA in HK$12 billion currency cooling measure

External view of Hong Kong Monetary Authority at International Financial Centre, Central. Photo: Sam Tsang

The Hong Kong Monetary Authority stepped into the currency market again yesterday to weaken the Hong Kong dollar as the rush of "hot money" continues to flow into the city.

The de facto central bank intervened twice, selling a total of HK$12.013 billion in Hong Kong dollars, in a move to maintain the exchange rate within its official limits.

12 Dec 2012 - 4:22am

Hot money inflow may rock markets, warns HKMA's Norman Chan

HKMA chief Norman Chan Tak-lam

Hong Kong Monetary Authority chief executive Norman Chan Tak-lam has warned of volatile investment markets ahead, due to hot money flowing into the city.

The city's central bank has already bought US$7 billion by selling the same amount of Hong Kong dollars since mid-October, Chan said on the sidelines of an economic forum.

11 Dec 2012 - 2:55am

Business Digest, December 8, 2012

HKMA sells HK$3.875b to weaken HK dollar

8 Dec 2012 - 3:49am

Business Digest, December 5, 2012

SJM leads casinos' slide on junket curb worries

The Hong Kong Monetary Authority sold HK$3.875 billion on the foreign exchange market yesterday to weaken the Hong Kong dollar as the currency repeatedly hit the strong end of its trading range. Under the peg to the US dollar, the HKMA must intervene when the Hong Kong dollar hits 7.75 or 7.85, to maintain the trading band. 

5 Dec 2012 - 4:59am

Business Digest, November 30, 2012

The Labor Department received fewer first-time claims for unemployment insurance last week as the disruptions wrought by superstorm Sandy ebbed.

S&P maintains China's sovereign debt ratings

Standard & Poor's affirmed China's sovereign long-term credit rating of AA-minus and short-term rating of A-1-plus in an annual report yesterday and said the outlook remains stable, citing the country's "exceptional" growth prospects, holdings of overseas assets and modest government indebtedness. Bloomberg


8 May 2015 - 9:46am

Business Digest, November 28, 2012

UAE mulls full foreign ownership of firms. Photo: Xinhua

HKMA sells HK$3.1b to weaken HK dollar

The Hong Kong Monetary Authority sold HK$3.1 billion in the currency markets to weaken the local dollar, preventing it from strengthening past its trading peg with the US dollar, after the US dollar hit HK$7.75, the lower end of the trading band between the local unit and the greenback.


28 Nov 2012 - 2:34am

Blame greed, not the yuan, for Hong Kong's food price rises

Mainland food prices drive food price inflation in Hong Kong. Photo: Bloomberg

"Stronger yuan to bring Hong Kong higher food prices", warned a headline in last Saturday's South China Morning Post.

The article that followed quoted a clutch of importers and retailers, all saying much the same thing.

7 Nov 2012 - 4:47am 3 comments