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8. Sterling Safeguards
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now
We are aware that the recent depreciation of the Hong Kong dollar along with the US dollar has had an impact on the value of pensions. But it would be wrong to determine policy on the basis of short term trends. The link between the Hong Kong and the US
dollars which was introduced in 1983 provides stability over the
long term. I am therefore not persuaded that, overall, the present arrangements work to the disadvantage of the Hong Kong pensioner. Furthermore, the Hong Kong Government awards annual pension increases based on movements in the Consumer Price Index in Hong Kong. These afford a measure of protection to the extent that exchange rate movements are reflected in the Consumer Price Index.
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