Hong Kong dollar banknotes are arranged for a photograph on April 23. The HKMA has intervened several times this year to defend its currency peg even before reports emerged that US authorities have considered undermining the Hong Kong dollar’s peg to the US dollar as a way to punish China for its actions towards Hong Kong. Photo: Bloomberg Hong Kong dollar banknotes are arranged for a photograph on April 23. The HKMA has intervened several times this year to defend its currency peg even before reports emerged that US authorities have considered undermining the Hong Kong dollar’s peg to the US dollar as a way to punish China for its actions towards Hong Kong. Photo: Bloomberg
Hong Kong dollar banknotes are arranged for a photograph on April 23. The HKMA has intervened several times this year to defend its currency peg even before reports emerged that US authorities have considered undermining the Hong Kong dollar’s peg to the US dollar as a way to punish China for its actions towards Hong Kong. Photo: Bloomberg
Neal Kimberley
Opinion

Opinion

Macroscope by Neal Kimberley

Attacking Hong Kong dollar peg would hurt those the US hopes to help

  • Washington should bin such proposals as the people of Hong Kong stand to lose the most from undermining the Linked Rate Exchange System
  • Pursuing them in an attempt to punish China risks immediate damage to US international standing as well as introducing more risks into the global economy

Hong Kong dollar banknotes are arranged for a photograph on April 23. The HKMA has intervened several times this year to defend its currency peg even before reports emerged that US authorities have considered undermining the Hong Kong dollar’s peg to the US dollar as a way to punish China for its actions towards Hong Kong. Photo: Bloomberg Hong Kong dollar banknotes are arranged for a photograph on April 23. The HKMA has intervened several times this year to defend its currency peg even before reports emerged that US authorities have considered undermining the Hong Kong dollar’s peg to the US dollar as a way to punish China for its actions towards Hong Kong. Photo: Bloomberg
Hong Kong dollar banknotes are arranged for a photograph on April 23. The HKMA has intervened several times this year to defend its currency peg even before reports emerged that US authorities have considered undermining the Hong Kong dollar’s peg to the US dollar as a way to punish China for its actions towards Hong Kong. Photo: Bloomberg
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Neal Kimberley

Neal Kimberley

UK-based Neal Kimberley has been active in the financial markets since 1985. Having worked in sales and trading in the dealing rooms of major banks in London for many years, he moved to ThomsonReuters in 2009 to provide market analysis. He has been contributing to the Post since 2015 and writes about macroeconomics from a market perspective, with a particular emphasis on currencies and interest rates.