Trump aides consider targeting Hong Kong dollar

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Trump aides consider targeting Hong Kong dollar
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However, analysts say such a measure was unlikely owing to the upheaval it would cause to global markets. FMTNews

HONG KONG: White House aides are considering undermining the Hong Kong dollar’s peg to the greenback as part of efforts to punish China over its new security law in the city, a report said Wednesday.

However, it cited unnamed sources as saying the move had not been discussed at senior levels of the Trump administration, while analysts said such a measure was unlikely owing to the upheaval it would cause to global markets. The city’s dollar was linked to the greenback in 1983 in a bid to prevent a sell-off as it wobbled over fears about China’s reunification talks with Britain.

The HKMA, the de facto central bank, has in recent months had to sell billions worth of local dollars to maintain that link, as cash floods into the city to take advantage of its relatively high interest rates.

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