Chan Maobo: Hong Kong has no plans to withdraw from the Exchange Fund again within five years

ChainCatcher reports that, according to The South China Morning Post, Hong Kong Financial Secretary Paul Chan disclosed that there are no plans to withdraw funds from the Exchange Fund again within the next five years. He previously announced that Hong Kong would transfer HKD 150 billion (USD 19 billion) from the Exchange Fund, which is used to maintain the peg between the Hong Kong dollar and the US dollar. This proposed withdrawal is the first since 1984.

Paul Chan stated that such measures are not expected to be repeated in the medium term and does not intend for withdrawals to become a “regular practice.” The main purpose of the Exchange Fund is to support the HKD/USD exchange rate within the trading band of 7.75 to 7.85, thereby maintaining financial stability and investor confidence.