You are here

Hong Kong seen spending billions more to defend currency peg

Section: Daily Dispatches

By Tian Chen
Bloomberg News
Thursday, March 14, 2019

This round of currency intervention in Hong Kong is far from over.

That's according to analysts, who are watching the interplay between the amount of money in the city's financial system and local borrowing costs. Shorting the Hong Kong dollar will remain profitable until the latter starts to go up sharply, and the monetary authority will spend at least another HK$50 billion (US$6.4 billion) defending the peg before that happens, according to Bank of America Merrill Lynch and OCBC Wing Hang Bank Ltd.

... Dispatch continues below ...



ADVERTISEMENT

We Are Amid the Biggest Financial Bubble in History;
When It Bursts, Bullion Owned in the Safest Way Will Protect Wealth

With GoldCore you can own allocated -- and most importantly -- segregated coins and bars in Switzerland, Singapore, and Hong Kong.

Switzerland, Singapore, and Hong Kong remain extremely safe jurisdictions for storing bullion. Avoid exchange-traded funds and digital gold providers where you are a price taker. Ensure that you are outright legal owner of your bullion. If you do not own segregated bullion that you can visit, inspect, and take delivery of, you are exposed.

Crucial guides to storage in Singapore and Switzerland can be read here:

http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore

http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland

GoldCore does not report transactions to any authority. Safety, privacy, and confidentiality are paramount when we are entrusted with storage of our clients' precious metals.

Email the GoldCore team at info@goldcore.com or call our trading desk:

UK: +44(0)203-086-9200. U.S.: +1-302-635-1160. International: +353(0)1-632-5010.

Visit us at: http://www.goldcore.com



Hong Kong's currency has hit the weak end of its trading band repeatedly over the past week, spurring intervention that's cost nearly $700 million.

At the heart of the analysts' calculus is a call on how low the city's aggregate balance can go before banks start feeling a funding squeeze. ...

... For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-03-15/hong-kong-seen-spendi...

* * *

Join GATA here:

Mining Investment Asia
Marina Bay Sands Conference and Exhibition Center
Singapore
Tuesday-Thursday, March 26-28

https://www.mininginvestmentasia.com/

Mines and Money Asia
Hong Kong Conference and Exhibition Center
Wan Chai, Hong Kong
Tuesday-Thursday, April 2-4

https://asia.minesandmoney.com/

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16