The architects of the currency peg were aware that it would be impossible for Hong Kong to allow the free movement of capital while at the same time operating both a fixed exchange rate and an independent monetary policy. Photo: Roy Issa
Tom Holland
Opinion

Opinion

Abacus by Tom Holland

Hong Kong’s currency peg to the US dollar isn’t an Achilles’ heel – it’s an Achilles’ shield

  • The peg, which prevented a complete economic wipeout in 1983, has been described as a ‘deadly weakness’
  • But in truth it is an automatically self-correcting mechanism that today’s Hongkongers can be thankful for, writes Tom Holland

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The architects of the currency peg were aware that it would be impossible for Hong Kong to allow the free movement of capital while at the same time operating both a fixed exchange rate and an independent monetary policy. Photo: Roy Issa
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