China’s yuan fell to the lowest this year as the central bank’s first use of repurchase agreements to drain funds since June fueled speculation China will tighten monetary policy and lower its economic growth target.
Hong Kong’s incoming leader, financial secretary and top central banker all pledged their commitment to the city’s currency peg after former monetary chief Joseph Yam called for a review of the link to the dollar.
Joseph Yam, the former Hong Kong monetary chief who helped introduce a dollar peg in 1983 and defended it against speculators during the Asian financial crisis, said the city should review its currency policy.
Joseph Yam, former Chief Executive at the Hong Kong Monetary Authority, the city’s de facto central bank, spoke to reporters in Hong Kong on the outlook of China’s economy and the European debt crisis. Yam is also an executive vice president of the China Society for Finance and Banking.
Former Hong Kong Monetary Authority Chief Executive Joseph Yam said financial markets and the so- called real economy have decoupled and there is a risk of a bubble bursting, Hong Kong’s Ming Pao Daily reported today.