Hong Kong Plans No Further Withdrawals from Exchange Fund in Next Five Years

Hong Kong's Financial Secretary, Paul Chan, has announced that there are no plans to withdraw funds from the Exchange Fund over the next five years. According to ChainCatcher, Chan had previously disclosed a proposal to transfer HK$150 billion (US$19 billion) from the fund, marking the first such withdrawal since 1984. The Exchange Fund is primarily used to maintain the stability of the Hong Kong dollar's peg to the U.S. dollar, ensuring it trades within the range of 7.75 to 7.85. Chan emphasized that future withdrawals are not intended to become a routine practice, as the fund plays a crucial role in supporting financial stability and investor confidence.