A free-trade zone opened by China last year is unlikely to be a major step toward making the yuan fully convertible and suitable as a Hong Kong dollar peg, the architect of the city’s 30-year-old currency regime said.
Hong Kong’s dollar peg shields the local economy from external shocks and it will be “many years” before a switch to a yuan link can be considered, according to John Greenwood, architect of the city’s exchange-rate system.
Hong Kong must bear the pain of inflation to maintain the dollar peg because the Chinese city may be worse off with the alternatives, according to John Greenwood, architect of the city’s fixed-exchange-rate system.
China will keep the yuan unchanged against the dollar until after June as exports have not returned to pre-financial crisis levels, according to John Greenwood, chief economist at Invesco Asset Management in London.
John Greenwood, chief economist at Invesco Ltd. and architect of Hong Kong's exchange-rate system, says German bank deposits are growing more rapidly as southern Europe endures a "slow and relatively silent run" on banks. Greenwood talks with Bloomberg's Ken Prewitt on Bloomberg Radio's "Bloomberg - The First Word."
China is “still a long way off” from making its currency fully convertible and until that happens Hong Kong can’t shift its dollar peg to the yuan, said John Greenwood, architect of the city’s exchange-rate system.
Bank of England Governor Mervyn King will return to the scene of some of his most acidic public encounters today for the annual occasion that helped define his relationship with Britain’s banking industry.