HKMA’s Chan Rejects Hong Kong Dollar Link to Currency Basket

Hong Kong Monetary Authority head Norman Chan rejected proposals for the city’s currency to be pegged to a basket of currencies or the yuan instead of the U.S. dollar.

Linking to a group of currencies “won’t give Hong Kong independence in its interest-rate policy” and would lose the advantages of “high transparency, simple operation and high efficiency,” Chan said in a column posted on the de facto central bank’s website today.