The wave of liquidity unleashed by US Federal Reserve Chairman Ben Bernanke and mimicked by central banks in Japan and the Eurozone is causing serious problems for the Hong Kong Monetary Authority, the territory's de facto central bank. The HKMA has been working feverishly for weeks to cope with the vast amounts of hot money flowing into the territory, with little success as officials struggle for answers. With demand high from international traders for Hong Kong dollars, the HKMA is having to print billions to maintain the historic peg to the US dollar.
Hong Kong's Hot Money Problem
Hong Kong's Hot Money Problem
Hong Kong's Hot Money Problem
The wave of liquidity unleashed by US Federal Reserve Chairman Ben Bernanke and mimicked by central banks in Japan and the Eurozone is causing serious problems for the Hong Kong Monetary Authority, the territory's de facto central bank. The HKMA has been working feverishly for weeks to cope with the vast amounts of hot money flowing into the territory, with little success as officials struggle for answers. With demand high from international traders for Hong Kong dollars, the HKMA is having to print billions to maintain the historic peg to the US dollar.