Hong Kong Peg Architect Says Convertible Yuan `Long Way Off’
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China is “still a long way off” from making its currency fully convertible and until that happens Hong Kong can’t shift its dollar peg to the yuan, said John Greenwood, architect of the city’s exchange-rate system.
The Hong Kong dollar’s value has been kept at about HK$7.80 to the greenback since 1983 Chief Executive-elect Leung Chun-ying, who begins a five-year term on July 1, said last month he has no plans to adjust the link. The city’s current leader, Donald Tsang, said in November the existing arrangement would stay at least until the yuan becomes fully convertible.