Economics
Hong Kong Defends Peg as Sanctions Fuel Russian Cash Flows
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Hong Kong’s monetary authority intervened in the foreign-exchange market to curb gains in the local currency as sanctions over Ukraine stoked speculation of an influx of Russian cash.
The central bank bought $925 million in Hong Kong and New York hours today, data posted on the Hong Kong Monetary Authority Bloomberg page show. That adds to the $8.39 billion it purchased in July, the most since at least October 2012, according to data compiled by Bloomberg. Russian capital outflow was about $2.5 billion in July, according to Renaissance Capital Ltd.