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ANALYSIS - HIGH LIQUIDITY CUSHIONS HONG KONG DOLLAR.

Publication: AsiaPulse News
Publication Date: 14-JUN-05
Format: Online - approximately 743 words
Delivery: Immediate Online Access

Article Excerpt
(Analysis from Asia Today, Australia's regional business magazine. Contact: asiatoday(at)asiatoday.com.au

HONG KONG - Faced with the prospect of increasing interest rates in the United States, and a Chinese currency that is under pressure for revaluation, Hong Kong is in an unenviable position.

Because its currency is pegged to the US dollar, Hong Kong's monetary policy is dictated by Alan Greenspan, Governor of the US Federal Reserve. On the other side of the pincer, if China finally relents to growing international pressure and revalues its renminbi, the pegged Hong Kong dollar will be affected.

Kevin Ho, Hong Kong's Permanent Secretary for Financial Services, is, however, sanguine that Hong Kong is managing...

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