Hong Kong Intervenes to Defend Its Weakening Currency

The video discusses the selling pressure on the Hong Kong dollar due to US economic factors like the hawkish Fed and rising treasury yields. It highlights the impact of COVID restrictions on Hong Kong's economy and the potential recovery as curbs loosen. The Hong Kong Monetary Authority's efforts to defend the currency peg are examined, along with liquidity and interest rate trends. The video concludes with long-term considerations about the currency's future and potential re-pegging options.

How might local interest rates in Hong Kong change in relation to US rates?

What are the potential long-term questions regarding the peg of the Hong Kong dollar?