The Monetary Authority’s key priority in the next few years is to maintain Hong Kong’s monetary and financial stability and it has no plans to change the Linked Exchange Rate System.
Monetary Authority Chief Executive Eddie Yue made the statement on his first day on the job, stressing that Hong Kong’s economy is facing huge challenges and uncertainties.
“Apart from the transition to a new position, I will also be faced with a challenging external and domestic environment. This includes the weakening of the global economic momentum, the uncertainties over the China-US trade conflict and also over Brexit, the unpredictable monetary policy stance across the different central banks especially in the US, and also the social events in Hong Kong in the recent months.”
He made it clear that the Linked Exchange Rate System is the most appropriate monetary structure for Hong Kong.
“The foundation of this stability is Linked Exchange Rate System, which has helped Hong Kong weather different financial storms since 1983.
“I have been involved in the operation of the link throughout my career in the authority and I have also gone through two financial crises.
“I firmly believe that the Linked Exchange Rate System is the most appropriate monetary system for Hong Kong and we see no need and have no intention of changing this well-established system.”