Hong Kong's Currency Board Faces Challenges Amid Dollar's Decline.
Hong Kong operates a unique currency board system that pegs its currency to the US dollar, despite the dollar's decline. This system limits the government's ability to control the money supply. While currency boards were popular in the 1990s, they are now mainly used by colonies and countries with unstable currencies. Hong Kong is the largest economy using a currency board, due to its historical development and geopolitical situation.