DollarisationMuch has been said about the link between the Hong Kong Dollar and the US Dollar under the linked exchange rate mechanism, better known as the "Peg". Read our critique of the weaknesses of this quasi-currency board system, and the conclusion that a full currency union with the US dollar, known as "dollarisation" would not only remove the currency risk from lending to, and investing in, Hong Kong, but would also serve to dampen the excesses of booms and busts that have become a major part of the economic landscape.
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