Fears over Exchange Fund discipline overblown: Hong Kong’s dollar peg architect

Hong Kong has adequate safeguards to prevent any misuse of the Exchange Fund, according to the economist known as the “father of the city’s dollar peg”, who called concerns over the government’s decision to draw from the de facto sovereign wealth fund “a little overblown”. John Greenwood said the government’s plan to transfer HK$150 billion (US$19.1 billion) from the fund – which plays an essential role in defending the Hong Kong dollar’s peg to the US dollar – would have no effect on the...

By Connor Mycroft