Is the Hong Kong Dollar Next in Line for a Devaluation ?

The city’s long term success in currency management will be put to the test.
Is the Hong Kong Dollar Next in Line for a Devaluation ?
A woman stands outside of a HSBC branch in Hong Kong on July 8, 2014. Philippe Lopez/AFP/Getty Images
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It is the most successful currency manager in the world. No, we are not talking about the Federal Reserve, we are talking about the Hong Kong Monetary Authority (HKMA).

It has kept the Hong Kong Dollar (HKD) pegged to the U.S. Dollar for almost 33 years now with barely any volatility, trading in a band of HK$ 7.75 to HK$ 7.85 per U.S. dollar. In the last 10 years, it only violated the band once to the downside in 2003 because of the SARS epidemic.

(Citigroup)
Citigroup
Valentin Schmid
Valentin Schmid
Author
Valentin Schmid is a former business editor for the Epoch Times. His areas of expertise include global macroeconomic trends and financial markets, China, and Bitcoin. Before joining the paper in 2012, he worked as a portfolio manager for BNP Paribas in Amsterdam, London, Paris, and Hong Kong.
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