While Hong Kong's GDP growth is more correlated with that of China than that of the United States since its reversion in July 1997, such correlation does not make a strong case for re-pegging the Hong Kong dollar
to the renminbi.
Confidence in the Hong Kong dollar
is derived from the robustness of the monetary system and we have one of the most robust systems in the world, with the whole of the Hong Kong-dollar monetary base more than fully backed by foreign reserves.
The Hong Kong Monetary Authority now faces a traditional dilemma: the interest rates required to induce investors to hold Hong Kong dollars
will put real estate under considerable downward price pressure.
The decline in Hong Kong dollar
assets was mainly due to withdrawals of placements by Fiscal Reserves, which was partly offset by the increase in market value of Hong Kong equities and additional placements from HKSAR government funds and statutory bodies.
Yeung, 53, confirmed under cross-examination that he had received 20 million Hong Kong dollars
(PS1.6 million) from the mystery figure in 2007 as returns on an investment in the gambling city of Macau.
He also refuted the idea of linking the Hong Kong dollar
with a basket of currencies because it would be a ''very much manipulative issue.''
Speculators engaged in a series of sales of Hong Kong Dollars
on spot and forward markets.
Note: The composite interest rate is a weighted average interest rate of all Hong Kong dollar
interest bearing liabilities, which include deposits from customers, amounts due to banks, negotiable certificates of deposit and other debt instruments, and Hong Kong dollar
non-interest bearing demand deposits on the books of banks.
Foreign currency assets decreased by HK$39.1 billion and Hong Kong dollar
assets decreased by HK$8.5 billion.
Other options include a free-floating Hong Kong dollar
bid/ask bid/ask Australian dollar 1.1391/1.1395 1.1348/1.1355 British pound 2.1069/2.1073 2.1085/2.1094 Euro 1.7270/ 1.7272 1.7319/1.7323 Hong Kong dollar
0.1626/0.1626 0.1633/0.1634 Japanese yen 100 1.2380/1.2383 1.2417/ 1.2422 Swiss franc 1.4133/1.4142 1.4169/1.4177 U.S.
The Hong Kong dollar
is typically allowed to trade in a narrow range between HK$7.75 and HK$7.85.