Hong Kong Is Blowing Billions To Defend The Dollar Peg... And It's Not Working

Discussion in 'Economics' started by Error Correction Funder, Apr 18, 2018.

  1. Overnight trading in HKD offered a brief moment of hope for the Monetary Authority as the dollar popped off its peg band's lower limit after comments from the former HKMA chief Joseph Yam renounced the current HKMA chief's comments and suggested rate-hikes (to counter the endless flow from the LIBOR-HIBOR carry trade) was room for Hong Kong to adjust interest rates and additional exchange fund bill sales can be an option.

    However, that did not last, as the flows just kept coming and HKD was back at the 7.85 to the USD level very quickly.

    https://www.zerohedge.com/news/2018...illions-defend-dollar-peg-and-its-not-working
     
  2. billions is nothing for HKMA
     
  3. Quiet1

    Quiet1

    HK currency board survived 1997 despite being attacked. Same rate to USD since 1980s. Go ahead sell the HKD, knock yourself out.
     
  4. "Attacked". Lol, so dramatic.

    The rest of Asia is where the anti-money is.
     
  5. truetype

    truetype

    Baron should start a new forum, Zerohedge Re-posts
     
    bone and Lou Friedman like this.
  6. kashirin

    kashirin

    their reserves several times currency in circulation

    they can reavlue to 3 Hkd pere USD and still be fine
     
  7. HKMA will never run out of cash, if you understand its history and context of HK as a whole (china backing).
     
  8. JSOP

    JSOP

    They are still doing it after 20+ years??!! Last time they tried to do that, it was huge disaster; they took a huge blow. I can't believe they never learned anything. Guess Soros needs to teach them a lesson again.
     
    #10     Apr 19, 2018