Core Viewpoint - The Hong Kong dollar's peg to the US dollar will remain unchanged despite recent market volatility and a slight decline in the US dollar's dominance, as stated by John Greenwood, the economist behind the currency mechanism [1][4]. Group 1: Currency Peg Mechanism - The Hong Kong dollar has been pegged to the US dollar at HK$7.80 since 1983, with a trading band of HK$7.75-HK$7.85 introduced in 2005 [5]. - The currency board system has functioned as intended during a challenging year for the Hong Kong dollar, with Greenwood affirming that there is no intention to alter the current system [1][4]. - The linked currency system has successfully navigated market fluctuations for the past four decades, reinforcing the view that pegging to the US dollar remains the best option for Hong Kong [5]. Group 2: Market Dynamics - Earlier in the year, a liquidity surge from the Hong Kong Monetary Authority (HKMA) defending the currency peg led to a significant drop in Hong Kong interbank rates, creating a divergence between Hong Kong and US interest rates [2]. - This divergence prompted carry trades, resulting in the Hong Kong dollar reaching the weak end of its peg, which necessitated 12 interventions by the HKMA between June 25 and August 13 [2]. - Greenwood expressed confidence that the US dollar's value and role as a global currency will not see drastic changes, indicating stability in the current system [6].