Thursday, June 21, 2012

Hong Kong Considering to De-peg from USD

For over 30 years, Hong King’s currency has been pegged to the US dollar with hope that the reserve currency would bring monetary stability. However, with the current uncertainty in the USD, Hong Kong policy makers are weighing their options whether to peg to another currency or let the HKD be traded independently.
In the subsequent three decades, China's economy has grown from strength to strength, overtaking Japan as the world's second biggest income generator in 2010.
At the same time, growth in the US economy has slowed and its currency seems to be showing signs of a long-term downward trend.

With more than half of Hong Kong's exports going to the mainland, and with financial engagement between the two sides deepening, Hong Kong's currency system is likely to become ever more linked to China's.

Read More

No comments:

Post a Comment