Hong Kong dollar's US peg faces review amid de-dollarisation push

The Hong Kong dollar has been linked to the US dollar at a rate of HK$7.80 per US$ since October 1983, with a trading band of HK$7.75‑7.85. The Hong Kong Securities and Futures Professionals Association (HKSFPA) has submitted a proposal urging a review of the peg, suggesting the creation of an independent expert committee co‑led by the Hong Kong Monetary Authority (HKMA) and the Financial Services and Treasury Bureau to explore reforms such as moving to a basket of major currencies and gold.

The association argues that the current arrangement cedes monetary‑policy control to the US Federal Reserve, exposing local homebuyers, small businesses, property prices and citizens’ retirement savings to US rate‑hike cycles and potential dollar volatility. While analysts contend the peg is likely to remain, the proposal aligns with a broader global debate on “de‑dollarisation” and Beijing’s push to expand the yuan’s international role through Hong Kong’s offshore market.