Analysts: Limited impact if Fed tightens Hong Kong's US dollar funding arrangements

Analysts said John Moolenaar, chairman of the US House of Representatives Select Committee on the Chinese Communist Party, wrote to Federal Reserve Chairman Kevin Warsh, requesting a review of the arrangements for the Hong Kong Monetary Authority to obtain short-term US dollar funding from the Federal Reserve, with limited impact on Hong Kong. The funding arrangement is not a regular source of financing for Hong Kong. Analysts also said that any restrictions could instead weaken the global dominance of the US dollar.