Hong Kong's Ex-Central Banker Drives Doubt Into Dollar Peg - Forbes
Former central banker Joseph Yam Chi-kwong sent out waves of shock yesterday when he said it was time to reconsider the peg between Hong Kong and U.S. dollars. His statement comes as a surprise to all, as throughout his 16 years as chief executive of the Hong Kong Monetary Authority (HKMA), he defended and strongly upheld the peg between the two currencies. In his paper titled, “The Future of the Monetary System of Hong Kong,” Yam said although the fixed exchange rate he helped foster served Hong Kong well for nearly 30 years and survived two of the most severe financial crises in world history, “it cannot be an end in itself.” At a press briefing, Yam said, “the circumstances have changed,” in that the U.S. dollar has continued to weaken, and monetary loosening in developed markets has sparked inflation in Hong Kong, The Standard reports. The peg, which Yam introduced in 1983, is currently set at 7.8 Hong Kong dollars to $1. He had previously declared it necessary for Hong Kong’s stability and prosperity on multiple occasions for years.
News from The ROBERT | CHARLES Group for investing in the futures and futures options markets. Futures trading is risky. Our goal is to take the risk out of a high risk business. Keep your comments clean and respect others' opinions. Profanity and insults are not acceptable. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD READ AND BE AWARE OF THE RISKS, DISCLOSURES, AND OTHER INFORMATION SET FORTH BELOW. *
Wednesday, June 13, 2012
The information and data contained on this blog was obtained from sources considered reliable. Their accuracy or completeness is not guaranteed. Information provided on this website is not to be deemed as an offer or solicitation with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed on will be the full responsibility of the person authorizing such transaction.