HK Has No Plan to Drop Currency Peg With US Dollar, Official

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Last updated at: (Beijing Time) Monday, February 04, 2002

HK Has No Plan to Drop Currency Peg With US Dollar, Official

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Hong Kong Financial Secretary Antony Leung has reiterated that Hong Kong has no plan nor does itintend to change the linked exchange rate with the U.S. Dollar, according to government sources Saturday.

"This is not an option for Hong Kong", he told a gathering of business leaders, bankers, academics, and media guests at the HongKong networking dinner Friday in New York as part of the World Economic Forum being held in New York.

He said some people had suggested that the link should be abolished to solve the problem of deflation which was part of the painful process of economic restructuring now affecting Hong Kong.They had cited Argentina as an example to support their argument.

Hong Kong is markedly different from Argentina, he stressed. "We do not have any external debt. We have a sizable foreign exchange reserve of over 100 billion U.S. dollars. The lesson to learn is not to perpetuate the problem of fiscal deficits," Leungsaid.

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