Foreign Exchange Market Operations and Reserve Management: The Recent Experience of Hong Kong

8 Pages Posted: 13 Dec 2019

Date Written: October 31, 2019

Abstract

This note reviews the recent experience of the Hong Kong Monetary Authority’s foreign exchange market operations and illustrates why such operations are a passive and mechanical process under the currency board arrangement. This note also discusses whether Hong Kong is well prepared for capital outflows following massive inflows that began in 2008, and concludes by discussing the rationale of the Hong Kong Monetary Authority’s reserve management.

Full Publication: Reserve Management and FX Intervention

Keywords: linked exchange rate system, convertibility undertaking, exchange rate system credibility, reserve management

JEL Classification: E52, E58, N1

Suggested Citation

Monetary Authority, Hong Kong, Foreign Exchange Market Operations and Reserve Management: The Recent Experience of Hong Kong (October 31, 2019). BIS Paper No. 104j, Available at SSRN: https://ssrn.com/abstract=3501082

Hong Kong Monetary Authority (Contact Author)

Hong Kong Monetary Authority

3 Garden Road, 30th Floor
Hong Kong
Hong Kong

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
6
Abstract Views
158
PlumX Metrics