The government should consider pegging the Hong Kong dollar to the yuan when the mainland currency becomes fully convertible, former financial secretary Antony Leung Kam-chung said yesterday.
In an RTHK interview, Mr Leung said the peg with the greenback should continue for now, even though he and former chief executive Tung Chee-hwa had considered delinking them in 2002 when the Hong Kong dollar came under attack from currency speculators.
'Now there is no need to [de-peg], especially when the value of the yuan is rising. Hong Kong dollars are depreciating,' he said. 'If the Hong Kong dollar continues to peg with the US dollar, it may still be beneficial to our economy.'
But Mr Leung added: 'Once the yuan becomes fully convertible, the government should consider linking the Hong Kong dollar with the yuan.'
He did not say when he expected full yuan convertibility.
Mr Leung recalled that in 2002 the government had faced two options: to secure the peg, also called the Linked Exchange Rate, or reduce the deficit.