Hong Kong Monetary Authority once more unto the breach
- sold HK$ 1.55bln
HKMA says the latest intervention will lift the aggregate balance (the sum of balances on clearing accounts maintained by banks with them) to HK$ 345.94bln on 30 Sept when the injected funds will be settled
The Hong Kong $ is pegged at 7.8 vs USD but can trade between 7.75-7.85. However under the rules of the peg the HKMA is obliged to step in when either extreme is traded to keep the band intact
They have recently stated there is no chance of the peg being removed but this on-going pressure must be causing concern
