4 ms·
Hongkong has a peg to the USD, while China used to. It is not optimal, but I wouldn't say it is unsustainable.
by fspeech 11y ago
Hongkong has a peg to the USD, while China used to. It is not optimal, but I wouldn't say it is unsustainable.
- dools 11y agoWhen China pegged it had completely unassailable reserves of USD. Pegging currency leaves you highly vulnerable to speculative traders and limits the extent to which you can pursue fiscal policy that promotes the prosperity of the populous.