HK’s Finance Secretary: No plans to change US dollar peg

Hong Kong’s (HK) Finance Secretary Paul Chan said in a statement on Monday, the city’s government has no plans to change its currency’s peg to the US dollar, especially after the US removed its special treatment.

Key quotes

“Confident in defending the Hong Kong dollar exchange rate.”

“Foreign exchange reserves twice the size of the entire monetary base and liquidity in the banking system very healthy and strong.”

“Capital will continue to flow freely in and out of Hong Kong.”

Market reaction

After a volatile start to the week in early Asia, USD/HKD is consolidating in a tight range around 7.7525. The spot hit a daily high of 7.7547 and a day’s low of 7.7513.