Possible Fed Move to Pile More Pressure on Pegged HK Dollar – Channel NewsAsia Article Featuring IEMS’ Edwin Lai
Singapore-based TV Channel NewsAsia zoomed in on the latest US Federal Reserve’s decision on interest rates, its pressure on the HK dollar, and impact on the pegged dollar system. The story interviewed Professor Edwin Lai of the Economics Department, who said that if the HK peg continues, the HK dollar would appreciate further against the RMB, leading to the question of whether or not the Hong Kong economy could withstand that kind of appreciation as Hong Kong goods would become more expensive for mainland Chinese. Commenting on the pegged HK dollar, Professor Lai said any delinking has to be done unexpectedly or it will trigger speculative attack on the currency.
Read the full article here: Channel NewsAsia
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