HK$5-bn injection to defend peg
24-03-2009
The Hong Kong Monetary Authority has injected HK$5- billion into the local banking system to maintain the currency peg with the US dollar. Its chief executive, Joseph Yam, said the move was necessary because of a large influx of money into Hong Kong in the past two days. He said that the extra funds would help reduce borrowing costs and boost the economy. Commenting on the US plan to tackle toxic bank debts, Mr Yam said it was a right decision to make because governments should help tp normalise markets when they fail to function properly.
