Hong Kong loosens its dollar's 22-year peg

Hong Kong Monetary Authority chief Joseph Yam said Thursday 19 May that a decision to loosen the Hong Kong dollar's 22-year peg to the US dollar won't encourage banks to raise interest rates sharply and hurt businesses.

The Hong Kong Monetary Authority announced Wednesday it will set up a trading band on the Hong Kong dollar, with a floor of HK$7.85 to US$1 and a ceiling of HK$7.75.

Joseph Yam, the HKMA's head, said the move was aimed at discouraging buying of the Hong Kong dollar on speculati

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