Skip to content
Subscriber Only

Hong Kong Financial Chief Rejects Calls for Review of Dollar Peg

Hong Kong Financial Secretary John Tsang rejected calls from lawmakers to review the city’s 29-year-old dollar peg amid rising concern asset prices are being driven to unsustainable levels by record-low borrowing costs.

The exchange-rate system ties the city’s monetary policy to that of the U.S., where the Federal Reserve is using near-zero interest rates to help the economy recover from a recession. Linking the Hong Kong dollar to a basket of currencies won’t have much effect on local rates, Tsang told the Legislative Council today.