Hong Kong’s currency defense has become a balancing act that threatens its nascent economic recovery.
When the city’s de facto central bank flooded the banking system with cash earlier this year to counter a rise in the Hong Kong dollar, the impact was immediate. The currency tumbled from HK$7.75 to HK$7.85 per dollar — flipping between the two sides of the permitted trading band — and interbank borrowing rates plunged.
www.bloomberg.com
#HKDUSD #Hong #Kongs #Push #Defend #Currency #Band #Started
