HK dollar peg under strain
dollar is coming under increasing economic and political strain, including risks canada goose store that property prices will rise even higher, but there little chance policy makers will abandon canada goose factory sale it any time soon.
The HKMA has Canada Goose Online already stepped into the currency market four times in less than a canada goose black friday sale week, selling a total HK$14.4 billion ($1.85 billion) of Hong Kong dollars, and market observers say it will need to keep doing so.
expect net inflows into the Hong Kong dollar will continue for canada goose coats on sale some time, the city canada goose central bank said on Wednesday.
The HKMA moves have successfully kept the exchange rate within its target range, currently cheap canada goose uk between 7.75 and Canada Goose Parka 7.85 per dollar, but sparked fears that the cash injection will find its way into the uk canada goose local property market where the exorbitant cost Canada Goose online of housing has become a source canada goose uk outlet of political friction and push prices even higher. dollar.
But Financial Secretary John Tsang immediately threw cold water on the idea.
all agree that the linked exchange rate is most suitable for Hong Kong and there no need whatsoever to make any linked site canada goose sale https://www.canadagooseparks.com change, uk canada goose outlet he said.
Most analysts who spoke to canada goose clearance Reuters also supported the current regime. dollar will persist canada goose uk black friday since the system keeps the currency and economy stable, said Adrienne Lui at Citi Group.
ASSET PRICES The Hong Kong government has moved to restrict the impact of hot money flows on residential property in particular, ordering banks to curb home loans to borrowers with more than cheap Canada Goose one mortgage.
But injecting canadian goose jacket currency into the local Canada Goose Outlet economy, as the monetary auithority does with each Canada Goose Coats On Sale intervention to maintain the dollar Canada Goose sale peg, counteracts such administrative measures.
would further canada goose clearance sale aggravate the existing excess liquidity condition, hence driving demand for property as a long term hedge against it, Christiaan Tuntono, research analyst at Credit Suisse, said in a research note.
The Centa City leading index (CCL), which evaluates secondary private residential canada goose coats property prices in Hong Kong, rose 2.79 percent to 111.19 during the week of Oct. 8 14 up, from the previous month, which was well above the peak in 1997.
On the upside, the prospect of fund flows returning to Hong Kong has also caused shares in Hong Kong Exchanges buy canada goose jacket cheap Clearing to rally by nearly 10 percent.
The HKMA has buy canada goose jacket intervened in currency markets in the past, sometimes to prevent speculative attacks, and at other times in response to global economic events. The last series of interventions took place following the collapse of Lehman Brothers in 2008, when the central bank sold HK$640 billion into the market.
The latest intervention will lift the aggregate balance the sum of balances on clearing accounts maintained by banks with the HKMA to HK$163 billion Canada Goose Jackets on Oct. 25, according to Reuters data.
The liberalisation and internationalisation of the Chinese yuan has added a new dimension to the debate.
However, economists say such canada goose uk shop a change would need to follow, nor precede, the opening of China capital account. At present most of the yuan in the world remains within China borders. ($1 = 7.7500 Hong Kong dollars) (Editing by Ken Wills and Raju Gopalakrishnan).