Sunday, 27 Sep 2020

Hong Kong finance sec says no plans to change U.S. dollar peg

HONG KONG (Reuters) – Hong Kong had no plans to change its currency’s peg to the U.S. dollar and the Asian financial hub has not seen any “obvious” capital outflows after Washington moved to strip the city of its special status in U.S. law, the city’s finance secretary said.

Paul Chan said on Monday that authorities were confident in defending the Hong Kong dollar HKD= exchange rate, with foreign exchange reserves twice the size of the entire monetary base and liquidity in the banking system “very healthy and strong”.

Chan added capital will continue to flow freely in and out of Hong Kong.

(This story was refiled to correct spelling of of “Chan” in second paragraph)

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