HKMA To Retain US$ Peg

BMI View: In line with our long-held opinion that Hong Kong would retain its currency peg to the US dollar - despite rising speculation that the authorities would switch to a peg with the Chinese yuan as the two units approached parity at the end of last year - there has been a decoupling between the two Asian currencies this year, further supporting our view that we are unlikely to see any significant changes to Hong Kong's currency regime for some time. The Hong Kong unit is pegged at HKD7.80/US$, but reforms introduced in May 2005 allow the currency to

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