The architect of Hong Kong’s dollar peg system has dismissed growing concerns about potential misuse of the Exchange Fund, calling the fears exaggerated. John Greenwood, a prominent economist instrumental in establishing the city’s currency mechanism, emphasized that existing safeguards are sufficient to ensure responsible management of the fund. He noted that the government's recent decision to draw from the de facto sovereign wealth fund was within established frameworks and not indicative of broader financial instability.
Greenwood pointed out that the Exchange Fund operates under strict oversight and long-standing protocols designed to protect Hong Kong’s monetary stability. He argued that public apprehension stems from misunderstanding the fund’s role and governance structure. According to him, the mechanisms in place have historically prevented mismanagement and continue to provide confidence in the city’s financial architecture.