| ID | 170315 |
| Title Proper | Linking the Hong Kong Dollar to the SDR |
| Other Title Information | an increasingly attractive option |
| Language | ENG |
| Author | Harrison, Matthew ; Matthew Harrison, Geng Xiao ; Xiao, Geng |
| Summary / Abstract (Note) | Since 1983, the Hong Kong dollar has been linked under a modified currency board mechanism to the US dollar. This arrangement has maintained confidence in the Hong Kong dollar's value, and is generally regarded as a success. Yet this confidence has been bought at the cost of volatility vis-à-vis other currencies and volatility in the economy as a whole. Geopolitically, as a Special Administrative Region of China, Hong Kong may find a link to the US dollar unsustainable, particularly if US-China tensions worsen. However, linking to China's RMB will not be a sensible option as long as convertibility of the RMB remains restricted. Linking the Hong Kong dollar to the IMF's SDR, which includes the RMB, would be a possibility in the future—the more attractive if by then there is wider use of the SDR. |
| `In' analytical Note | China Review Vol. 19, No.4; Nov 2019: p.33-54 |
| Journal Source | China Review 2019-12 19, 4 |
| Key Words | SDR ; Hong Kong Dollar |