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The remarkable resilience of Hong Kong’s exchange rate regime
[La singulière résilience du régime de change de Hong Kong]

Author

Listed:
  • Bruno Cabrillac
  • Camille Macaire
  • Marie-Elisabeth De la Serve

Abstract

In 1983, Hong Kong pegged its currency to the US dollar. Since then, the special administrative region (SAR) has undergone profound transformations, changing from an industrial economy cut off from its Chinese hinterland to a key gateway for goods and capital between China and the rest of the world, and then to a centre for high value-added services, without abandoning the peg. The latter has also withstood various episodes of tension (Asian and 2008 financial crises, 2019 Protests, Covid). The history and functioning of this linked exchange rate regime sheds light on the factors of its resilience, as well as on the challenges that lie ahead. Hong Kong remains a key link in China’s international financial integration, which should lead to maintaining the peg. Hong Kong a adopté en 1983 un régime de change fixe dur (le « peg ») ancré au dollar américain. Depuis, la région administrative spéciale a connu des transformations profondes, passant d’une économie industrielle coupée de son hinterland chinois à un point de passage incontournable pour les biens et les capitaux entre la Chine et le reste du monde, puis à un centre de services à forte valeur ajoutée, sans renoncer au peg. Ce dernier a également résisté à différents épisodes de tensions (crises financières asiatique et de 2008, manifestations de 2019, Covid). L’histoire et le fonctionnement de ce régime de change éclairent sur les facteurs de sa résilience, ainsi que sur les enjeux à venir. Hong Kong reste un maillon clé pour l’intégration financière internationale de la Chine, ce qui devrait entraîner le maintien du peg.

Suggested Citation

  • Bruno Cabrillac & Camille Macaire & Marie-Elisabeth De la Serve, 2022. "The remarkable resilience of Hong Kong’s exchange rate regime [La singulière résilience du régime de change de Hong Kong]," Bulletin de la Banque de France, Banque de France, issue 239.
    • Handle: RePEc:bfr:bullbf:2022:239:04
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    References listed on IDEAS

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