"Hong Kong Chief considers currency link with China | AboutHK.Com - more information about HK"

Hong Kong Chief Executive Donald Tsang said the territory could consider a "link" between the currency and the Chinese yuan, if the yuan were fully convertible, when he admitted that probably take years. "If that happens, and I do not know when, I am sure that Hong Kong would think ... currency link with China," Mr Tsang said in response to a question about a Credit Suisse Group Investor Forum. He did not, what form of currency link, if he said it probably would not be for "many, many, many years on the road." Mr Tsang, the Commission made a rare official acknowledgment that the Hong Kong dollar, in a limited band around 7.80 to the U.S. dollar since 1983, one day, leave that bar. The government, the administration of the financial system separate from the Chinese mainland, has shifted from the pole is the cornerstone of monetary policy. The Hong Kong dollar moved robust demand for a large part of last year as investors settled trading in other currencies of Hong Kong dollar and the local currency is the relative safety. That forced the Hong Kong Monetary Authority to get back and push the currency lower against the U.S.. There have been so again Friday and Monday, before Mr. Tsang remarks, sales totaling $ 5.43 billion HK ($ 700.5 million) over the two days to the currency in its trading partners Band. The monetary authority also intervened Tuesday during the meeting in New York trading, the sale of HK $ 3.1 billion. Financial commentator David Webb suggested it was inappropriate for Mr Tsang for his comments so publicly. "By even broaching the subject, the [chief executive] the risk that speculative pressure on the existing PEG," said Webb, said in an e-mail. Comments Please login to post comments or replies.