A currency's appreciation or depreciation ... a floating currency, so the market dictates its value. The value of the Hong Kong dollar, on the other hand, is pegged at a fixed exchange rate ...

When the value of the currency declines, authorities worry about both imported inflation and the balance sheet effects of an exchange rate depreciation on borrowers ... to go to the soft end of free ...

This brief considers the choice of an appropriate exchange rate regime—floating, managed or fixed arrangements ... desirable unless the exchange rate is firmly fixed through a currency board, ...

panic selling of the local currency drove it to an all-time low of 9.6 HKD per USD. This was down from 6.5 per US dollar at the start of the year, under the floating exchange rate system.