Hong Kong Protests: Peg-Xit?
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UBS
«The peg is very solid because the currency in circulation is backed 1.7 times by FX reserves,» said Tan Min Lan, APAC head of UBS Global Wealth Management's chief investment office, in a recent «CNBC» report that also underlined observable capital outflows from the wealth manager. «The FX reserve is huge, we’re talking about $435 billion.»
Regarding political factors, Tan was equally confident.
«For all long as there is a political will to actually hold the peg and there’s no reason why there isn’t ... it’s difficult to envisage how the peg may go,» she said.
