HK keeping currency undervalued, says US think tank
A US think tank has accused Hong Kong of undervaluing its currency to maintain its competitive edge against the mainland, a statement immediately derided by the government.
The Peterson Institute for International Economics on Wednesday told Congress that the Obama administration should also label Hong Kong, Malaysia, Singapore and Taiwan as territories deliberately keeping their currencies undervalued to maintain competitiveness against China.
Fred Bergsten, head of the institute, told the House Ways and Means Committee that a successful campaign to pressure Asian nations on the currency issue could create as many as 1.2 million new American jobs.
Financial Secretary John Tsang Chun-wah said in response that Bergsten's claim about an undervalued currency was 'odd', given that the Hong Kong dollar has been pegged against the US dollar for the past two decades.
