Did you know that the Hong Kong dollar is starting to be frozen compared to other dollar exchange currencies? For example, Singapore's dollar is still increasing its own value for more than a 40%. While this happens, the Hong Kong dollar is recessively having no increasing rate. This is what leaves analysers with doubt: what is causing the Hong Kong dollar's recession?
Well, you can easily blame the worldwide crisis on this. However, it can be a lot more complex than that. Those who see at the crisis like something cities can't fight against to have to start analysing the situation a little more deeply.
So first of all, it is important to mention that Hong Kong has never had a very formal central bank. HSBC was one of the banks that produced most of Hong Kong's establishing actions when they were experimenting with free-floating currencies. Consequently, Hong Kong has no real base to start an economy sustainer, as it has no central bank. Not having a central bank is not a negative thing itself. In fact, it only causes problems when the external currency demand becomes too high, and it is impossible for local banks to sustain all these requests and still offer their services locally.
That is the main reason why the Hong Kong dollar is having such a hard time evolving! It has become too famous. Hong Kong is known as a city with too much trading action. Therefore, people from other areas are buying too many Hong Kong dollars, leaving the local deposits practically empty.