Hong Kong’s US dollar peg faces fresh calls for review – but is change feasible?

AI Summary

Calls are emerging in Hong Kong to review the US dollar peg of its currency, with proposals to incorporate the yuan and consider a currency basket including gold. Financial analysts believe the existing system will likely remain.

The Hong Kong dollar’s four-decade-old peg to the US dollar is facing fresh calls for review, after a local financial industry body urged greater use of the yuan and floated the idea of shifting to a basket of major currencies and gold – though financial analysts argue the current system is likely to remain in place. The proposal to revisit the pegged exchange rate system was submitted this week by the Hong Kong Securities and Futures Professionals Association (HKSFPA), as the government gathers...