The Hong Kong Dollar
Pegged to the U.S. dollar since 1983, the Hong Kong dollar is usually a dull currency.
Except when it isn’t, like this year.
The Hong Kong Monetary Authority, the de-facto central bank, has a mandate to keep the currency trading at HK$7.75 to HK$7.85 per US dollar.
Hong Kong’s property sector is already under pressure from an exodus of Hong Kong residents, whether for pandemic-related or political reasons after Beijing tightened its grip on the city in 2020. Higher mortgage costs won’t help.
The city’s “huge” foreign exchange reserves -- about $440 billion
China’s central bank also can provide US dollars through a currency swap line. China has the world’s largest foreign-exchange reserves at more than $3 trillion.
Bloomberg 1 augusti 2022
Hong Kong sounds the alarm on Chinese capital flight Ambrose Evans-Pritchard 14 May 2019
https://englundmacro.blogspot.com/2019/05/the-hong-kong-dollar-has-fallen-to-33.html
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