Macau, China, 19 June – Macau’s currency, the pataca, is to continue to be indirectly indexed against the US dollar via the Hong Kong dollar and the Monetary Authority rejects the possibility of any exchange rate revision between the two currencies, the president of the Macau Monetary Authority said Wednesday.
Anselmo Teng said, in a reply to the Legislative Assembly (the local parliament) that the “Macau currency has kept its exchange rate relation with the Hong Kong dollar for a long time; since the 1970s.”
”This scheme has shown that it is positive for the stability of the monetary system and for promoting the sustained development of Macau,” he said, noting that “observing the changes caused by economic growth and by inflation over the last few years and taking into account the period of relatively rapid growth, it is normal that some pressure be felt on the Macau economic system.”
”On analysing the variation of the Macau Consumer Price Index (CPI), we can see that the elements driving inflation are not directly related to the exchange rate mechanism,” he said.
Over the last few montsh Macau has experienced significant inflationary pressure that economists have said is due not only to high internal demand driven by the arrival of thousands of gaming industry workers, but also the indirect indexation of Macau’s currency against the US dollar via the Hong Kong dollar. (macauhub)