Guidance

Hong Kong's Dollar Peg Likely Remains Safe From U.S. Sanctions -- For Now

Michael Monderer
Senior Analyst for Global Economics, Stratfor
Jul 13, 2020 | 10:00 GMT
An evening view of the western half of Hong Kong.

An evening view of the western half of Hong Kong.

(Pictures Ltd./Corbis via Getty Images)

U.S. President Donald Trump's expected signature of the Hong Kong Autonomy Act (HKAA) presages a policy challenge for his administration as it seeks to pressure China without further damaging the U.S.-China trade deal. This, combined with the need to avoid creating additional economic uncertainty ahead of the November election, suggests possible new sanctions will not pose an immediate threat to Hong Kong's currency peg to the U.S. dollar....

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