Originally Posted by
Dan Winterland
The HK$/US$ peg is being backed up with HKMA reserves as it takes a hit from the trade war. This cannot go on forever. A de-peg will take a big chunk out of any HK$ savings. And then? Some experts think a peg to the CNY makes better sense, which will be a death knell for the HK$ as there will be little point with continuing with it..
Yes word is 35% of HKMA reserves. And we’re not talking small biccies here. Think GDP of a good sized country.
Not sustainable as you say.