ERM crisis

THE mayhem in the European exchange-rate mechanism (ERM) will hit the territory's exports to Europe, warns Hong Kong Economic and Trade Association president Eddy Li Sau-hung.

Plunging European currencies and the rising yen in Japan will raise prices and reduce competitiveness of goods exported to Europe.

Mr Li said Hong Kong manufacturers would be doubly harmed as European economies would react by stepping up anti-dumping measures.