Linked exchange rate system lers

Today marks the 30th anniversary of the Linked Exchange Rate System (LERS), which was introduced on Oct 17, 1983. For 30 years, the LERS has been the cornerstone of Hong Kong's monetary and Will continue to closely monitor the movements of the foreign exchange and local currency markets with a view to maintaining the stability of Hong Kong dollar through the Linked Exchange Rate Keywords: linked exchange rate system, convertibility undertaking, exchange rate system credibility, reserve management . 126 BIS Papers No 104 1. Introduction Since the Linked Exchange Rate System (LERS) has been in operation since 1983, it has undergone two major refinements, namely the “seven technical measures”

The linked rate system “remains the appropriate arrangement for Hong Kong” – that was the preliminary conclusion in an International Monetary Fund report dated December 4. “The monetary policy objective of Hong Kong is currency stability,” said a spokesperson for the HKMA. “The LERS (Linked Exchange Rate System) has proved to be highly resilient, weathering many economic cycles and crises, and has continued to operate smoothly notwithstanding massive fund inflows and outflows in the past decade.” Monetary operations under the Currency Board system: the experience of Hong Kong Hong Kong Monetary Authority Abstract . This paper documents the major policy reforms Hong Kong’s Linked Exchange to Rate System (LERS) that have enabled it to evolve into thehighly credible, efficient, and transparent system today. The linked rate system "remains the appropriate arrangement for Hong Kong" " that was the preliminary conclusion in an International Monetary Fund report dated December 4. "The LERS continues to function well despite increased global financial market volatility," the IMF Staff Concluding Statement said. Different Exchange Rate Systems with Pros and Cons. Fixed Exchange Rate System. In a fixed exchange rate system, exchange rates either held constant or allowed to fluctuate only within very narrow boundaries. in international trade without concern about exchange rate movements of the currency to which their local currency is linked.

Hong Kong's linked exchange rate system (LERS) has been in operation for 25 years, during which time many other fixed exchange rate systems have come and gone, succumbing to shocks and/or speculative attacks. This fact alone suggests that the LERS is a robust system which enjoys a large measure of credibility

Today marks the 30th anniversary of the Linked Exchange Rate System (LERS), which was introduced on Oct 17, 1983. For 30 years, the LERS has been the cornerstone of Hong Kong's monetary and Will continue to closely monitor the movements of the foreign exchange and local currency markets with a view to maintaining the stability of Hong Kong dollar through the Linked Exchange Rate Keywords: linked exchange rate system, convertibility undertaking, exchange rate system credibility, reserve management . 126 BIS Papers No 104 1. Introduction Since the Linked Exchange Rate System (LERS) has been in operation since 1983, it has undergone two major refinements, namely the “seven technical measures” refinements to the Hong Kong dollar Linked Exchange Rate system (LERS) in May 2005 to remove uncertainty about the extent to which the exchange rate may strengthen and help align Hong Kong dollar interest rates more closely with their US dollar counterparts. This paper reviews the operations of the LERS since then Hong Kong's linked exchange rate system (LERS) has been in operation for 25 years, during which time many other fixed exchange rate systems have come and gone, succumbing to shocks and/or speculative attacks. This fact alone suggests that the LERS is a robust system which enjoys a large measure of credibility The linked rate system “remains the appropriate arrangement for Hong Kong” – that was the preliminary conclusion in an International Monetary Fund report dated December 4. “The monetary policy objective of Hong Kong is currency stability,” said a spokesperson for the HKMA. “The LERS (Linked Exchange Rate System) has proved to be highly resilient, weathering many economic cycles and crises, and has continued to operate smoothly notwithstanding massive fund inflows and outflows in the past decade.”

26 Aug 2019 The Linked Exchange Rate System (LERS) has been implemented in Hong Kong since 17 October 1983. Through a rigorous, robust and 

4 Dec 2019 IMF commends resilience of Hong Kong's financial system and of Hong Kong's financial system and Linked Exchange Rate System (LERS)  19 Apr 2019 A linked exchange rate system is a method of managing a nation's currency that links it to another currency at a specified exchange rate. 16 Jun 2019 Firstly, regarding the foreign exchange and currency market, the Hong Kong mechanism under the Linked Exchange Rate System (LERS). 3 Nov 2019 "Hong Kong dollar has been stable, the Linked Exchange Rate System (LERS) will not and does not need to change," HKMA Chief Executive 

30 Oct 2019 With the Linked Exchange Rate System (LERS), Hong Kong has pegged Also known as, a “currency board regime”, the LERS has withstood 

26 Aug 2019 The Linked Exchange Rate System (LERS) has been implemented in Hong Kong since 17 October 1983. Through a rigorous, robust and 

5 Nov 2019 “Hong Kong dollar has been stable, the Linked Exchange Rate System (LERS) will not and does not need to change, ” Yue said during a 

Often countries that use a linked exchange rate system specify a trading range around the selected exchange rate. This band around the fixed rate, which is often plus or minus 1%, adds some flexibility to the regime. Some countries have also employed a "crawling peg" system. Keywords: linked exchange rate system, convertibility undertaking, exchange rate system credibility, reserve management . 126 BIS Papers No 104 1. Introduction Since the Linked Exchange Rate System (LERS) has been in operation since 1983, it has undergone two major refinements, namely the “seven technical measures” Under the LERS, the primary monetary policy objective of Hong Kong is to maintain the exchange rate stability of Hong Kong dollar against US dollar, rather than to target asset prices or consumer price inflation.

26 Aug 2019 The Linked Exchange Rate System (LERS) has been implemented in Hong Kong since 17 October 1983. Through a rigorous, robust and  31 Dec 2019 Hong Kong's Linked Exchange Rate System is a Currency Board system with the following features: 9 Dec 2019 “The LERS (Linked Exchange Rate System) has proved to be highly resilient, weathering many economic cycles and crises, and has continued  5 Nov 2019 The Linked Exchange Rate System (LERS) has served Hong Kong well through many economic cycles in the past 36 years, and has been