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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Cogito Ergo Sum who wrote (139609)3/2/2018 7:39:19 PM
From: TobagoJack  Read Replies (2) | Respond to of 218014
 
i have an additional issue to hedge against, meaning ...

... must guard against sharply higher 'defensive' interest rate that would make all leverage in the system suddenly expensive, even as

... purchasing power of cash gets hit

answer may be ... gold, but not necessarily miners and royalty / streamers, but paper and physical

bloomberg.com

Hong Kong Dollar Drops to Lowest Since Band Implemented in 2005
More stories by Justina Lee
March 2, 2018, 5:27 PM GMT+8

Hong Kong’s currency depreciated to the weakest level since the government widened a trading band against the greenback in 2005, putting pressure on the monetary authorities to slow its downward trajectory.

The exchange rate dropped to HK$7.8315 per dollar on Friday, approaching the weak end of its trading band. The Hong Kong dollar has slumped 0.9 percent over the past 12 months as low lending costs in the city make it lucrative to borrow the currency to buy the U.S. dollar.

The slump is a test for the city’s de-facto central bank, which will be compelled to intervene should the currency weaken to 7.85 per U.S. dollar. While additional bill sales last year helped support the currency, the Hong Kong Monetary Authority said in December it had no plans to take such a move. Interbank lending rates in Hong Kong are the lowest since 2008 versus those in America.