Hong Kong makes first currency intervention since 2020 to control US dollar peg

Hong Kong’s Monetary Authority bought 6 billion USD to maintain the currency peg as the local dollar neared 7.75. This is the first currency intervention since 2020, prompted by the weakening US dollar.

Taiwan’s central bank similarly intervened as the Taiwanese dollar surged 3% against the US dollar, indicating widespread regional efforts to manage currency instability.

China is reducing its US Treasury holdings and focusing on mortgage-backed securities and agency bonds, reflecting changing investment strategies amidst shifts in global economic conditions.

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