The real risk to the Hong Kong dollar peg lies in Washington, not in markets

What is the next step after the US revoked territory's special trading status?

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The Hong Kong dollar's peg to the U.S. dollar is embedded in the territory's financial infrastructure, underpinning its asset pricing, mortgage structures, bond market, and its international appeal as a stable financial center. © Reuters

Diana Choyleva is founder and chief economist of Enodo Economics, a macroeconomic, political and geopolitical forecasting company in London focused on China and its global impact. She is also senior fellow on Chinese Economy at the Asia Society Policy Institute's Center for China Analysis.

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