Hong Kong Financial Markets
The financial tremors that shook Southeast Asia this summer left the Hong Kong dollar relatively unrattled. One cause of the October aftershock was uncertainty about Hong Kong’s ability to sustain its currency peg to the U.S. dollar following the realignments of other Southeast Asian currencies. In addition, the U.S. dollar’s nominal appreciation of nearly 50% against the Japanese yen since April 1995 pulled the Hong Kong dollar along with it. Last year, nearly 7% of Hong Kong’s exports went to Japan.
Suggested citation: “Hong Kong Financial Markets,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-11, pp. 18, 11.01.1997.