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Hong Kong Plans First Withdrawal from Currency Peg Defense Fund in 40 Years for Infrastructure Development

DEFENSE

Hong Kong intends to withdraw HK$150 billion ($19 billion) from its Exchange Fund for the first time since 1984, to finance the Northern Metropolis technology hub and infrastructure projects. The fund, which serves to stabilize the Hong Kong dollar's peg to the US dollar, recorded a gain of HK$331 billion last year. The government assures that foreign reserves remain sufficient to maintain the peg's stability post-withdrawal.

Feb 26, 2026, 6:03 AM

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