US moves against the Hong Kong dollar peg are unlikely for now, officials backpedal
Last week rumours abounded that the US was pondering moves to try to undermine the HKMA's peg of the local dollar against the USD
- US administration is reportedly in talks over the Hong Kong dollar peg
- No sign of the HKMA changing its HKD policy of pegged to the USD
Any move from the US appears to be off for now, the WSJ reports:
- Hong Kong … status as a global financial center limits the menu of effective levers available to Washington
- Major actions against Hong Kong's financial system risk hitting U.S., Western and Hong Kong companies and consumers, officials and analysts say
- … Trump administration officials discussed Hong Kong plans Thursday in a White House meeting, according to people familiar with the gathering. Officials will regroup early this week and may announce sanctions or other measures, one official said.
WSJ piece is here (may be gated).
ps. for an explanation of the HKD band/peg, check out the links above.