HKD

[behappyalways]

21.10.19【豐富│東南西北龍鳳配】Pt.2 這個人豪賭香港崩潰！結果輸個精光！
https://m.youtube.com/watch?v=_RPwvbeq33Y

What it means for Hong Kong if the world turns against the US dollar

The safe-haven buying propping up the US dollar will recede. As inflation worries grow, a lax Fed response could turn currency markets away – leaving the Hong Kong dollar at risk

Hong Kong’s currency is pegged at between 7.75 and 7.85 to the US dollar.

The Volcker-led Fed crushed inflation as it raised the Fed Funds rate as high as 20 per cent in 1981. The early 1980s saw the US dollar soar.

Source: SCMP

https://www.scmp.com/comment/opinion/ho ... -us-dollar

[behappyalways]

First Cracks: Hong Kong Intervenes To Prop Up Local Currency For First Time Since 2019
https://www.zerohedge.com/markets/first ... -time-2019

[behappyalways]

HKMA Is Blowing Billions To Defend Dollar Peg
https://www.zerohedge.com/markets/hkma- ... dollar-peg

[winston]

Peg would act as bridge in event of finance war: Yam

The Hong Kong dollar has been pegged to a tight band of between 7.75 and 7.85 versus the US dollar since 2005.

Yam suggested setting aside a certain amount from the city's fiscal reserves to develop the Northern Metropolis, while adding that this has not been discussed in detail.

Source: The Standard

https://www.thestandard.com.hk/section- ... e-war:-Yam

[behappyalways]

Hong Kong finance chief says 'huge' reserves will maintain peg
https://www.theedgesingapore.com/news/c ... intain-peg

[winston]

vested

Bill Ackman Says Pershing Has Large Notional Short Position Against HK Dollar

Pershing founder says hedge fund has a large position via puts
Hong Kong dollar weakness is reversing as liquidity shrinks

Source: Bloomberg

https://www.bloomberg.com/news/articles ... ify%20wall

[winston]

Bad news for Hong Kong currency short-sellers as Barclays sees peg status quo while yuan shortcomings hinder repeg

Speculation on peg change is ‘premature’, as the yuan is not yet freely convertible and yuan products for the Exchange Fund to invest in are lacking

BIS top boss also told the Post that the peg has given Hong Kong ‘certainty’ and ‘monetary stability’

by Enoch Yiu

Source: SCMP

https://www.scmp.com/business/article/3 ... 9115fcaeac

[winston]

Hong Kong is burning through aggregate balance defending dollar peg

The city’s aggregate balance — a gauge of interbank liquidity — has halved this year without driving local borrowing costs higher.

While the currency is pegged to the US dollar, the city’s one-month rates still trail their American counterparts by some 170 basis points, setting up a sweet spot for so-called carry traders.

It remains profitable for the traders to borrow the Hong Kong dollar cheaply and buy the higher-yielding greenback, pocketing the rate difference.

While it has about US$430 billion in foreign reserves, Hong Kong’s link to the dollar is under constant scrutiny with prominent hedge funds betting it will break and some strategists arguing for a shift to a yuan peg.

Source: Bloomberg

https://www.thestandard.com.hk/breaking ... -peg%C2%A0

[winston]

Why Hong Kong must ditch the US dollar peg and switch to the yuan now

Hong Kong risks being increasingly led by US monetary policy, which could see property prices and the economy come crashing down

Switching to the yuan would mean stability and a unique chance to ride the currency’s rise before it becomes fully convertible

by Andy Xie

Source: SCMP

https://www.scmp.com/comment/opinion/ar ... 75b528ab98

[winston]

HKMA battling peg pressure: US report

There has been a growing weakness in the local currency's peg to the greenback as it has touched the weak end of its managed value window more than 40 times from May 2022 to June 2023 amid higher US interest rates.

As the HKMA purchased Hong Kong dollars aggressively to defend the currency peg, the aggregate balance, a key gauge of liquidity in the banking system, has dropped precipitously over the past 12 months and has fallen 90 percent from its peak in 2021, it noted.

In June 2023, Hong Kong's aggregate balance fell to HK$44.76 billion, the lowest liquidity level since the global financial crisis in 2008, according to the report.

The HKMA holds the exchange rate of the Hong Kong dollar pegged at a range between 7.75 and 7.85 per US dollar. The Hong Kong government has maintained the peg since 1983.

Source: The Standard

https://www.thestandard.com.hk/section- ... -US-report