In the concluding statement of the IMF Mission that was published on December 4, the international organization’s Staff Mission praised the resilience of the financial system of Hong Kong. Additionally, the statement praised the LERS (Linked Exchange Rate System) as well.
The statement noted that the financial system and the historically wise macroeconomic stance of Hong Kong had given the country the capability of weathering economic storms. That resilience has been pivotal in tackling an economy that has slowed down considerably. The IMF stated that the economic situation has weakened, and in the third quarter of the year, Hong Kong entered into a recession.
However, that was not all. The IMF also praised Hong Kong for having further strengthened its regulatory framework. The move helped in making the financial system safer and much less prone to money laundering.
Paul Chan, Financial Secretary of Hong Kong, welcomed comments from the IMF. He said,
I am glad that the IMF supports the relief measures we formulated earlier to cope with the economic challenges. We will stay vigilant and monitor the economic situation closely. We are prepared to roll out further relief measures if necessary.