Hong Kong’s FX interventions came at right time, say economists
Experts believe the resulting fall in interest rates has provided welcome stimulus
Further interventions by the Hong Kong Monetary Authority (HKMA) to protect the local currency over the coming months are likely to be good news for the territory’s growth prospects, say economists.
The currency has been pegged at a rate of HK$7.75–7.85 to the US dollar since 1983. The peg – the HKMA’s Linked Exchange Rate System (Lers) – triggers automatic interventions to prevent the Hong Kong dollar from straying outside this range.
Over the past three months the territory’s de facto central
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