Eddie Yue reaffirms stance on the Linked Exchange Rate System

Hong Kong Monetary Authority Chief Executive Eddie Yue Wai-man said that the Linked Exchange Rate System creates a conducive environment for business and investment in the city, contrasting with the past year’s exchange rate volatility, where currencies such as the Australian dollar dropped 9 percent against the US dollar, the Korean won 12 percent, the Mexican peso over 20 percent, and the Japanese yen more than 9 percent.

Yue said banks in Hong Kong have responded swiftly by reducing local interest rates three times since the US entered its current interest rate cutting cycle, effectively lowering borrowing costs for businesses and individuals.

Both the government and the private sector are taking concrete steps to develop new industries and growth drivers to enhance the city’s overall competitiveness, Yue added.

(Melody Chen)