Singapore dollar is a hybrid free float currency, whereas, the Hong Kong dollar is pegged to the US dollar.
The single currency system in the European Union has not been efficient enough for the weak members of the EU. The member nations are not able to coordinate their fiscal policies/decisions amongst each other to keep the Euro stable. It had been further affected by the 2008 financial crisis as reported by the South China Morning Post.
The two Asian tigers are very different in some aspects, such as – their geographies, socio-economic factors and policies.
The managed free float policy of Singapore’s dollar is in reality based on a trade-weighted basket of its currency.
Whereas, the dollar in Hong Kong is pegged to the US dollar. The SAR(Special Administrative Region) back when it was a British colony was backed by the Bank of England. Now, post the Sino-British treaty in 1997, relies on the People’s Bank of China.
The city-state Singapore cannot help out Hong Kong in maintaining it’s sovereignty in anyways.
Hong Kong’s future is in the hands of the signatories of the 1984 Sino-British Joint declaration.
“It is time for the authorities to listen closely to the people’s voice,” says,
John Chan, Singapore.
