Hong Kong’s Central Bank Pours In Cash to Stabilize Its Pegged Currency, Higher Mortgage Rates Ensued

Hong Kong’s Central Bank Pours In Cash to Stabilize Its Pegged Currency, Higher Mortgage Rates Ensued
Genuine 1,000 Hong Kong dollar banknotes (about $130 each). Mike Clarke/AFP/Getty Images
Kathleen Li
Updated:
On Aug. 5, Hong Kong’s central bank bought the largest amount of its currency in one day since May 12—HK$14.161 billion (about $1.80 billion)—to stop it from weakening further and breaking its peg to the U.S. dollar.
On July 28, after the U.S. Federal Reserve announced a rate hike of 75 basis points, the Hong Kong Monetary Authority (HKMA), the city’s central bank, followed suit and raised its base rate upward by 75 basis points to 2.75 percent.
Kathleen Li
Kathleen Li
Author
Kathleen Li has contributed to The Epoch Times since 2009 and focuses on China-related topics. She is an engineer, chartered in civil and structural engineering in Australia.
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