HK Dollar Peg Architect Says Narrower Band May Ease Speculation

Currencies HK Dollar Peg Architect Says Narrower Band May Ease Speculation Narrowing the Hong Kong dollar’s trading band against the US greenback may enhance stability and reassure the public if such a move were ever implemented, according to John Greenwood, the economist dubbed the father of the city’s currency peg. “In terms of its effectiveness for the maintenance of the fixed rate, a narrower rate would, at least for the public at large, be more reassuring,” Greenwood, senior advisor of Chartwell Institute, said at a press briefing Wednesday. “There would be less variability and, therefore, less speculation that at some point it might be changed.”