2014-02-16 08:36:04 - The Monetary Office of Hong Kong serves as a local central bank sold its own currency in the market in the amount of 603 million dollars at the rate of HK $ 7.75 per U.S. dollar.
This is the first intervention, produced since December 2009. During the crisis, caused the flight of investors in this safe haven, the authorithies regularly entered to the market to stop the strengthening of its currency. Hong Kong dollar pegged to the U.S. at the rate of 7.8 in 1983.
Hong Kong thus joined the list of the economies that are trying to stop the appreciation of their currencies. Brazil's finance minister, who in the past one of the first announced the outbreak of currency wars, in October described the policy the central banks of developed countries as selfish.
The Swiss National Bank last year forced to carry out foreign exchange intervention to stop the strengthening of the franc. Ministry of Finance of
Japan four times in the last two years made large-scale sales of the yen. Analysts also suspected of foreign exchange interventions of South Korea's Central Bank.
Capital inflows into Hong Kong is also connected with the mainland. "China's economy has stabilized, investors are tuned to its recovery. Funds from Europe and the United States are flocking to Hong Kong for the purchase of shares related to China," - says the analyst of DBS Bank Chris Leung.
The Federal Reserve beginning the third stage stimulate the U.S. economy by announcing buying mortgage bonds at 40 billion dollars a month, at the same time ECB announced its program of buying government debt of troubled countries, and in addition, the Bank of Japan increased its asset purchase program at 126 billion dollars.
"Currency Wars" is a situation where central banks, usually at the behest of governments, deliberately weaken national money to support domestic producers. The past few years, the EU and the United States accused China of such policies.
More information at hk-banks.com
- the guide to banking and finances in Hong Kong