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RMB isn't pegged to the US dollar, but it's not freely convertable, either. OTOH, the Hong Kong dollar is indeed pegged, but doing so defeats the auto regulating nature of currency exchange.
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(\__/) 07/07/1937 - Never forget
(='.'=) "Claims demand evidence; extraordinary claims demand extraordinary evidence." -- Carl Sagan
(")_(") "Starting the fire from within." -
UR: What do you mean?
Golfing since 67Comment
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If a currency is pegged, it won't devalue when the economy slows down. Devaluing a currency increases exports and reduces imports, which is very important for an open economy such as Hong Kong.(\__/) 07/07/1937 - Never forget
(='.'=) "Claims demand evidence; extraordinary claims demand extraordinary evidence." -- Carl Sagan
(")_(") "Starting the fire from within."Comment
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