Hong Kong currency board reserves at risk
February 17, 2009 at 11:18 AM EST
[Skip to the end] Hong Kong’s currency board arrangement requires net exports to fund domestic net financial assets (’money supply’) needs that other nations get ‘free’ from their deficit spending. Net Hong Kong dollars can be had only by buying them from the monetary authority with USD, etc. With exports markets collapsing, the direct result for Hong Kong [...]