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What will happen to the Hong Kong Dollar now?

HKD is currently  pegged against the us dollar. 1USD = 7.75-7.85 HKD 
Obviously it won't happen overnight, but what if it does unpeg against the USD. what will happen to the HKD? I presume hkd will depreciated, does that mean it will go up as in 1Usd = 10 HKD, or will it go down 1usd= 5hkd
What is the procedure? Who get to decide? How long would it take?

Comments

  • EdGasketTheSecond
    EdGasketTheSecond Posts: 2,558 Forumite
    1,000 Posts Third Anniversary Photogenic Name Dropper
    edited 22 May 2020 at 8:40AM
    If the peg breaks then the hkd will drop such that it will take more hkd to buy 1 USD. The market will decide the rate but it won't be good for anyone invested in hk or the hkd.  
    As to the rate, an example of a weaker hkd might be
    1 USD = 10 hkd 
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