There is a risk that perpetuating the Hong Kong dollar peg becomes an end in itself: the city’s economy becomes beholden to, rather than served by, the present arrangement. Photo: Reuters
Opinion
Opinion
Macroscope
Is the dollar peg still in the Hong Kong economy’s best interest?
- While linking the US and Hong Kong currencies has served the city well in the past, that is no guarantee it will always be the case
- Given local economic conditions and growing geopolitical rivalry, Hong Kong needs to ask if following the US’ lead on monetary policy is still wise
There is a risk that perpetuating the Hong Kong dollar peg becomes an end in itself: the city’s economy becomes beholden to, rather than served by, the present arrangement. Photo: Reuters
