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Hong Kong Sells $1bn in Two Days to Defend Currency – SCMP

The central bank has made three interventions in two days, spending HK$8.533 billion (US$1.08 billion) in total to defend the local currency, which is weakening because of capital outflows


The Hong Kong Monetary Authority has spent over $1bn in two days defending the local currency.
The Hong Kong Monetary Authority has spent over $1bn in two days defending the local currency, which is weakening because of capital outflows. File photo: Reuters.

 

The Hong Kong Monetary Authority (HKMA) has made three interventions in two days, spending a total of HK$8.533 billion ($1.08 billion) to defend the local currency, which is weakening because of the large capital outflows, the South China Morning Post reported on Friday.

That sum is expected to grow as the Hong Kong dollar is at its lowest level in over three years and analysts say it’s likely to remain weak while traders seek higher US yields. They expect the HKMA will be forced to intervene in the currency market again in coming months, it said.

Read the full report: South China Morning Post.

 

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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