Major threats to Hong Kong economy are under control during coronavirus crisis, Financial Secretary Paul Chan says
- Government on top of risks relating to the currency, bank liquidity and the smooth running of markets, Chan says
- But another minister reveals new welfare claims from the unemployed have surged 151 per cent in a month as Covid-19 pandemic takes its toll
But Financial Secretary Paul Chan Mo-po’s assurances came as another minister said that welfare applications for the unemployed had soared 151 per cent from February to March after the jobless rate hit a record 4.2 per cent.
Writing in his official blog after last week’s currency intervention, Chan said: “In general, although the coronavirus has imposed pressure on economies and financial markets worldwide, including Hong Kong, Hong Kong’s financial risk is still at a controllable level.”
Hong Kong’s currency has been pegged to the US dollar since 1983, and the Hong Kong Monetary Authority (HKMA) is required to keep it trading within 7.75 and 7.85 to the US dollar.
By Thursday it had hit the top end of the scale, forcing the city’s de facto central bank to sell the currency to keep it within the target band on four occasions.
