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Is China going to depeg the HKD from the USD anytime soon?

Answers:1   |   LastAnswerAt:2011.04  

Asked at 2011.04.25 21:07:52
Like Will Rogers says, it is pointless to keep it pegged to the failing dollar. With the BRICS nations meeting, and their pessimistic viewpoint of the dollar (not to mention the host country China controlling most of our debt) i dont see how the dollar will survive much longer.

Since Hong kong is part of china now, and major chinese companies are traded in hong kong, i dont see china keeping the USD peg, which will only be a liability. I think that HKD will be pegged to the Yuan soon, meaning buying Hong kong now (like i did) will be a really good investment. The question, right now is not if, but when. So.. when are they going to do this?
answer Dave B  Answered at 2011.04.25 21:07:52
You are losing sight of the fact that China is not a capitalist nation. The error is significant because the yuan is also pegged to the dollar, intentionally. Devalued dollar would otherwise mean that jobs would leave China as orders went down, and to keep the yuan from climbing is easy to do - all they have to do is accept a price less than the market would bear.
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