No plans to change peg: Paul Chan
Financial Secretary Paul Chan on Monday said the government has no plans to review the Hong Kong dollar's peg to the greenback, saying it's crucial to maintaining international confidence in doing business in the SAR. Questions have been raised as to whether the linked exchange rate system should be changed and have the Hong Kong dollar pegged to other currencies, such as the yuan, instead of the US dollar. Speaking at a Legco panel meeting on the city's latest economic situation, Chan said the administration has no plans to review the exchange rate system, which he said has been working effectively since 1983. "We have been through a lot in the past, and this [system] has given the international community confidence that under the Basic Law, capital inflows and outflows are free, and our exchange rate is stable. You could transfer money in and out at any time," he said. "This confidence is important, especially when there are political or economic incidents and people lack confidence. It is a ballast." The financial secretary also said the local economy is stabilising, noting that the value of total retail sales, which fell 7.6 percent year-on-year in the first quarter, climbed 11.7 percent in April. He said it's vital to have the Covid-19 situation under control for the economy to keep its momentum.