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Trump Rejects Ending Hong Kong Dollar Peg as Penalty to China

  • Attacking currency peg proposed as way of hurting Beijing
  • Trump has faulted China over Hong Kong actions, coronavirus
Trump Aides Weigh Proposals to Undermine Hong Kong’s Dollar Peg
Photographer: Paul Yeung/Bloomberg
Updated on

President Donald Trump decided against moving to undermine the Hong Kong dollar’s peg to the greenback as his administration seeks to punish China for infringing on the territory’s political freedoms, according to a person familiar with the matter.

Aides at the White House and State department had weighed the possibility of limiting Hong Kong banks’ access to U.S. dollars as a way of striking back at Beijing, Bloomberg News reported last week. But they dropped the idea after advocates could not gather enough support, with those against the move concerned that it would be difficult to implement and could end up hurting the U.S., according to people familiar with the matter.