Core Viewpoint - Recent tightening of Hong Kong dollar supply and increased demand have led to the appreciation of the Hong Kong dollar, with the narrowing of the interest rate differential between Hong Kong and the US [1][5][6] Group 1: Currency and Monetary Policy - The Hong Kong Monetary Authority (HKMA) is expected to maintain a tight liquidity level in the short term, as the Hong Kong dollar is no longer near the weak end of its exchange rate peg [1][6] - The Hong Kong dollar's exchange rate and interest rate performance are highly dependent on the US dollar's movements and US monetary policy [4] - The interest rate differential between Hong Kong and the US is a key factor influencing capital flows and the Hong Kong dollar's valuation [4] Group 2: Market Dynamics - The recent increase in IPO activities on the Hong Kong Stock Exchange and inflows of southbound capital are expected to support the demand for the Hong Kong dollar [1][6] - The liquidity in the Hong Kong banking system has decreased significantly, from a high of 174.1 billion HKD on May 8 to 53.7 billion HKD as of August 18 [5] - The HIBOR rates have risen significantly, indicating a return to more normalized levels, which is expected to support the Hong Kong dollar's strength [5][6] Group 3: Future Outlook - In the short term, the Hong Kong dollar is expected to maintain a strong performance, supported by ongoing IPO activities and increased demand [6] - The overall demand for the Hong Kong dollar is anticipated to show resilience despite the end of the dividend season and reduced seasonal financing needs from banks [6]

Core Viewpoint - The Central Bank of Chile will initiate an international reserve accumulation plan over the next three years, aiming to gradually replace some existing foreign currency credit lines with domestic international reserves [1] Group 1: Reserve Accumulation Plan - The plan will allow for a maximum daily accumulation of $2.5 million [1] - It is expected to accumulate approximately $18.5 billion over three years [1] - The plan will be reviewed every six months, with potential adjustments based on significant market changes [1] Group 2: Financial Management Strategy - This measure is part of a broader financial management strategy [1] - The initiative aligns with the inflation targeting regime and floating exchange rate system [1]