Hong Kong dollar: Kyle Bass hedge fund bets on dollar peg removal - Business Insider

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Famed hedge funder Kyle Bass is betting big against the Hong Kong dollar as the US threatens to remove a key peg

The Hong Kong currency has been pegged to the US dollar since 1983, and trades in a strict band of about 7.8 HKD per US dollar. Ed Hyman was named Wall Street's best economist 39 times and called the tech bubble. He outlines 3 market drivers that are aligning for investors looking to capitalize on coronavirus chaos.The Hong Kong dollar peg has in the past been the subject of other big bets by renowned investors.

Billionaire investor George Soros, another hedge funder, made a similar bet in 1998 during the height of the Asian Financial Crisis. That bet turned sour. UK-based hedge fund star Crispin Odey also bet against the peg but withdrew from the trade in 2019. Last year mass protests took place to express dissatisfaction with the extradition bill being proposed with China. China's draconian law in May raised the specter of a similar scenes, although it has allowed authorities to more easily arrest protesters, muting protests so far.

Hong Kong's Monetary Authority sold about 13.4 billion Hong Kong dollars this week, to prevent the currency from appreciating and to keep the peg in tact. This brought the city's total expenditure to $13.5 billion since the start of the year to ensure its currency does not break the upper band limit of $7.75 per Hong Kong dollar. Something is loading.

 

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Looks like Hayman Capital Management's 😂 past track records not impressive at all.

Famed? As in famed loser? Indeed

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