WEDNESDAY, APRIL 24, 1991
"GIVEN THAT THE MERE THREAT
RATES HAS PROVED TO BE
EFFECTIVE
OF
IMPOSING IN DETERRING REVALUATION OF THE HONG KONG DOLLAR, IT IS UNLIKELY BE A NEED TO IMPLEMENT THESE RULES, HE SAID.
+
NEGATIVE INTEREST SPECULATION ON A THAT THERE WILL
LAST QUARTER OF NR MACLEOD REFERRED TO A PERIOD IN THE WHEN THERE WAS PERSISTENT SPECULATION ABOUT A REVALUATION OF THE KONG DOLLAR AGAINST THE U.S. DOLLAR.
1987 HONG
V.S. HONG KONG
STATEMENTS HE NOTED THAT DESPITE REPEATED
BY THE GOVERNMENT THAT THE EXCHANGE RATE LINK BETWEEN THE HONG KONG DOLLAR AND THE
SPECULATIVE
THE BUYING OF DOLLAR WOULD NOT BE CHANGED, DOLLAR CONTINUED AND THERE WERE SIGNS OF INTENSIFICATION.
FURTHER
INFLOW INTO THE HONG KONG INTEREST RATES ON FIVE WIDENING JANUARY 1988,
IN ORDER TO DISCOURAGE DOLLAR, THE HKAB COMMITTEE SUCCESSIVELY CUT OCCASIONS BETWEEN OCTOBER 1987 AND CONSIDERABLY THE INTEREST RATE DIFFERENTIALS BETWEEN HONG KONG
OF DEPOSITS AND DEPOSITS IN A NUMBER
CURRENCIES, FOREIGN
THE U.S. DOLLAR.
OF
DOLLAR INCLUDING
EVENTS,
THESE LARGE OUTFLOW FROM
MR MACLEOD SAID IN THE NORMAL COURSE DIFFERENTIALS SHOULD, IN TIME, HAVE LED TO A CORRECTIVE
RUMOURS OF AN THE HONG KONG DOLLAR. HOWEVER, WERE SO STRONG THAT SUCH AN OUTFLOW DID NOT OCCUR.
IMMINENT REVALUATION
BUSINESS
"THE SPECULATION BECAME SEVERE ENOUGH TO EXERT PRESSURE ON
THE PROPER CONDUCT CURRENCY AND DISRUPT
OF BANKING GENUINE COMMERCIAL ACTIVITY," HE SAID,
OUR
AND
MR MACLEOD SAID
THE REMEDY
IDENTIFIED
FURTHER MUCH
WIDENING
OF
WAS TO PROVIDE THE RATE THE INTEREST
FOR A POTENTIAL DIFFERENTIALS BY INTRODUCING THE CONCEPT OF NEGATIVE INTEREST RATES.
MADE BY THE "IN THIS CONNECTION, THE SPECIFIED RATE RULE WAS
19, 1987, HKAB COMMITTEE ON DECEMBER
AFTER CONSULTATION
THE WITH
LARGE FINANCIAL SECRETARY, TO PROVIDE FOR THE CHARGING OF INTEREST ON
RY BANKS LICENSED IN HONG KONG DOLLAR CLEARING BALANCES MAINTAINED HONG KONG.
ALL FUNDS
SHOULD COLLECTED
"THE RULE ALSO PROVIDED THAT GIVEN TO THE FINANCIAL SECRETARY AS CONTROLLER OF THE EXCHANGE FUND.
++
IN ORDER TO ENSURE THAT BANKS ADOPTED A
ON THIS
CHARGE PASSING
INTEREST COMMITTEE, AGAIN AFTER CONSULTATION
AMENDMENTS
ΤΟ
BE
IN
HKAB
PRACTICE UN 1 FORM
TO
THE CUSTOMERS, THEIR
SECRETARY, WITH THE FINANCIAL
MADE CERTAIN
LATER THE RULES
INTEREST RATES, ON
ON JANUARY 14, RETITLED RULES ON INterest rateS AND DEPOSIT CHARGES,
ADOPTED BY 1988, TO EMPOWER THE COMMITTEE TO SPECIFY PRACTICES TO BE BANKS.
ON LARGE CUSTOMERS, IF
"THIS PROVIDED THAT. DEPOSIT CHARGES MIGHT BE IMPOSED
BY THEIR HONG KONG DOLLAR CREDIT BALANCES MAINTAINED THERE WAS A NEED TO DO SO."
/THE ACTING
No comments yet.
Private notes are available after approval.