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Questions Over Hong Kong Dollar Peg Will Fade, Says FX Strategist
Debate over Hong Kong’s currency peg to the U.S. dollar will probably prove irrelevant in time, according to foreign-exchange veteran Stephen Jen. On the one hand, the city is bound to see the peg as an important symbol amid questions about its ability to govern itself, Jen says. And on the other, if it does integrate more tightly with mainland China, the resultant increase in use of the yuan in the city would make the Hong Kong dollar peg a side issue. “I do not believe the Hong Kong dollar peg will be broken, because the logic for its durability is very different from the conventional Western thoughts,” Jen, ... (full story)