august on Nostr: More likely a defensive measure. Reduce exposure to the lunatic government. Hold the ...
More likely a defensive measure. Reduce exposure to the lunatic government. Hold the dollars in case China has to deal with the same SWIFT related problems Russia did. Perhaps they have a military project in mind that USG may not like.
I don't see them needing a lot of USD liquidity as a buffer just to flip the peg. They just need to be willing to have a lot of HKD holders be unhappy. But I also think this is probably way down on the priority list. Of course, I'm in America, listening to our crazy government doing and saying crazy things, so I'm more inclined to think priority number one is reduce exposure/reliance on these complete nuts.
No doubt the view is different in Hong Kong.
I don't see them needing a lot of USD liquidity as a buffer just to flip the peg. They just need to be willing to have a lot of HKD holders be unhappy. But I also think this is probably way down on the priority list. Of course, I'm in America, listening to our crazy government doing and saying crazy things, so I'm more inclined to think priority number one is reduce exposure/reliance on these complete nuts.
No doubt the view is different in Hong Kong.