South China Morning Post report on remarks from HK's Financial Secretary Paul Chan.
- Hong Kong will “absolutely not” decouple its currency from the US dollar
- The possibility of another rise in US interest rates this week, combined with recent capital flight and escalating tensions between Washington and Beijing have fuelled concerns over the ability of Hong Kong to withstand the pressures on the currency peg.
- “This is working within our design [of the currency peg]. There’s no cause for alarm, we have ample liquidity,” Chan said, in reference to recent, frequent moves by the Hong Kong Monetary Authority (HKMA) to defend the currency peg.
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The rampant USD has pushed the HKD to the weak side of the band (higher USD/HKD). The Hong Kong Monetary Authority is tasked with keeping the HKD within the band:
