Anxiety over colony's future, economy may threaten currency's peg to dollar

Article Abstract:

The Hong Kong Monetary Authority is considering whether to change the exchange range of the Hong Kong dollar to the US dollar, which falls between 7.722 to 7.878 Hong Kong dollars to the US dollar. The decision to change the exchange rate of the local currency was spurred by concerns about Hong Kong's political and economic stability under Chinese rule. A discussion of some of the views of several economists on the impact of the uncertainty on the Hong Kong dollar-US dollar exchange rate is presented.

Foreign Exchange & Reserves Policy, Economic policy, Foreign exchange, Foreign exchange rates, Dollar (United States)

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Weakening economic conditions threaten currency

Article Abstract:

Hong Kong's declining property prices, rising interest rates and drooping unemployment are jeopardizing the city's currency. Demands for tax cuts and other relief initiatives grow more intensely. The Hong Kong Chamber of Commerce is demanding that the government help produce more jobs and exhort banks to reduce interest rates. A weakened Hong Kong currency may swiftly contaminate other Asian countries and send the region to another collapse.

Intnl Economic Policy, Asia, International economic relations

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Currency rate draws funds: Hong Kong dollar gives speculators an edge

Article Abstract:

The Hong Kong dollar has maintained its strong link to the US currency and some experts expect it to weaken in the future. However, Hong-Kong dollar interest rates are swinging wildly, indicating that the currency is likely to fall and worsening the country's economic downturn. The swings can be attributed the interest-rate differential between the US dollar and the Hong-Kong dollar which is being played by currency speculators.

Other General Government Support, Coinage & Currency, Money

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