The linked exchange rate system in effect does not allow the Hong Kong Government discretion to carry out an indepedent monetary policy; money issue and local interest rates are determined by market forces in combination with the linked exchange rate. However the Exchange Fund has sought to develop new methods of monetary management to intervene in foreign exchange and money markets with the objective of sustaining stable and orderly markets.
5. Then continue with 'Accounting arrangements
and as before.
CE Lane
Economic Advisers
8 June 1992
WH426b
270 2727
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