Forex

Hong Kong turmoil fuels HK dollar debate

Is Hong Kong’s currency peg to the US dollar under threat? Perhaps not imminently, but concerns are rising among some investment industry executives.
A strained relationship?
A strained relationship?

Hong Kong's status as a global financial centre is under increased scrutiny following weeks of popular protest and growing tensions with China. Might this crisis spill over to hurt the Hong Kong dollar, which has been linked to the US dollar since 1983

Most investment industry executives FinanceAsia spoke to say not. Despite the odd sceptical voice, notably that of US hedge fund manager Kyle Bass, they argue that the currency's dollar peg which is between HK$7.75 and HK$7.85 per US dollar isn't under imminent threat.

Still, tail risks that would have seemed totally implausible a few...

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