Articles: currency board (the HK$ peg)
Yam's Thick Peg
After 18 months of destructive ambiguity, in which interest rates have been on
the floor and property prices bubbling up to the ceiling, Joseph Yam has
admitted the need for a two-way convertibility undertaking on the Hong Kong
dollar. The bad news is that, for the sake of preserving bankers' jobs and
banks' profits, we have a thick peg, 10 cents wide, and continuing uncertainty,
rather than a fixed exchange rate. (27-May-05)
Destructive ambiguity
The Hong Kong dollar was pegged twenty years ago
today. We take aim at Yambo's latest whacky doctrine of "constructive
ambiguity". The whole point of the peg in 1983 was to reduce uncertainty, not
increase it. Uncertainty attracts speculators and certainty turns them off. So
how can you profit from all this? We'll tell you. (15-Oct-03)
Creeping Dollarisation
in HK
After ruling out dollarisation as an option in its Financial Market Review in
1998, the Government is embarking on a course that will lead to the next best
thing. We take a look ahead to how the introduction of a US Dollar clearing
system in Hong Kong may eventually lead to the sidelining of the Hong Kong
Dollar to pocket change. (23-May-00)
Dollarisation
and why it would be good for Hong Kong (1998)
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