HONG KONG — China's national security law for Hong Kong and moves by the United States to begin withdrawing privileges enjoyed by the city under U.S. law have unsettled investors. They have also raised fears about the stability of the Hong Kong dollar's (HKD) 36-year old peg to its U.S. counterpart, prompting local officials to issue several reassurances. HOW THE PEG WORKSThe HKD is pegged in a narrow range of 7.75-7.85 to the U.S. dollar. The Hong Kong Monetary Authority (HKMA) buys and sells the currency at either limit to maintain the range. The HKMA has sold HK$106 billion ($13.68 billion) so far this year to keep a strengthening Hong Kong dollar within this range, according to Reuters' calculations.

Source: International New York Times July 10, 2020 05:26 UTC