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N° 186 |
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| January 2000 |
| The Hong Kong Currency
Board and Speculative Attacks |
Stéphane Dées
Bronka Rzepkowski |
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| The Hong Kong dollar is the only Asian currency
to be anchored to the dollar using a currency board. The fact that the currency
was able to resist speculative attacks during the recent financial crisis should
not hide the weaknesses of the foreign exchange regime. A detailed analysis of
these episodes indicates that a particular form of speculation emerged in Hong
Kong. It is tightly linked to the functioning of currency boards once local financial
markets have developed and are opened up. The subsequent reforms should limit
such speculation in the future. But, Hong Kong is not immune to a new crisis,
especially if China's currency devalues strongly. |
Abstract |
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Full
text (pdf) |
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| The
Expectations of Hong Kong Dollar Devaluation and their Determinants, Working
Paper n°00-04, February 2000 |
Reference Working Paper |
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