Dr Ana Armstrong, chairman of Distinction Asset Management, asks whether there is a future for the Hong Kong dollar.
Recently, there has been widespread debate over the future of the euro. But the currency with perhaps the least certain future is the Hong Kong dollar (HKD). Because the HKD currency is pegged to the US dollar (USD), the Federal Reserve’s determination to keep interest rates low imposes two problems on residents of Hong Kong: rapidly increasing asset prices and a currency that is fast devaluing against most of its neighbours. Moreover, it is likely that Hong Kong will become a battleground of the currency war between US and China. The HKD/USD peg has been one of the most successful curr...
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