Peg architect says US all bark, no bite

Business | Winnie Lee 5 Jun 2020

Invesco chief economist and currency peg architect John Greenwood said it is almost impossible for the United States to take any action against Hong Kong's Linked Exchange Rate System and believed the Hong Kong dollar will survive amid the Sino-US trade war.

He noted that the Hong Kong Monetary Authority owned a huge amount of foreign currency reserves and furthermore, the reserves would allow for a sufficient number of conversions of Hong Kong dollars into the US dollar in the market exchanges, if required.

Greenwood said it was unreasonable for US President Trump to punish Hong Kong as the conflict was between America and China, instead of Hong Kong and the US.

HK currency's throughput and the foreign reserves rose 5.89 percent and fell 1.34 percent in March year-on-year respectively.

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