forex.pm forex forum binary options trade - Via Reuters - "Improbable bets on break of Hong Kong dollar peg adding up"

<p>The end of the Hong Kong dollar peg becomes a talking point every few years. </p><p>The latest talking head is hedge fund manager Buill Ackman, founder and CEO of Pershing Square Capital Management.</p><p>He is a smart guy. No question of that. The Reuters report says he betting on an improbable outcome. </p><p><a href="https://www.reuters.com/markets/currencies/improbable-bets-break-hong-kong-dollar-peg-adding-up-2022-12-04/" target="_blank" rel="nofollow">Via Reuters:</a></p><ul><li>Billionaire money manager Bill Ackman went public last month with his wager that the days of the Hong Kong dollar's 39-year-old peg to the U.S. dollar are numbered.</li><li>Most fundamental analysts say such bets are foolish, pointing to the city's still massive reserves and China's backing.</li><li>But they can be relatively cheap and even profitable regardless of the peg staying intact, and it buys insurance against unlikely but not impossible chains of events, such as a sudden blow-up in China, devaluation or a geopolitical chill.</li></ul><p>Kyle Bass bet heavily on the peg breaking back in 2019. For background on how the  Hong Kong Monetary Authority defend the peg check out this post:</p><ul><li><a href="https://www.forexlive.com/news/!/the-hong-kong-dollar-peg-has-been-in-place-without-breaking-since-1983-20190523" target="_blank" rel="follow">The Hong Kong dollar peg has been in place without breaking since 1983. This time its different says Kyle Bass.</a></li></ul><p>(ps. It wasn't different) </p>

                This article was written by Eamonn Sheridan at forexlive.com.