Article

Hong Kong plans to withdraw HK$150 billion ($19 billion) from its Exchange Fund for the first time in 40 years to finance infrastructure projects, including the Northern Metropolis technology hub. This withdrawal, pending advisory committee approval, would be the first since 1984.

The Exchange Fund, which had a record gain of HK$331 billion last year, supports the Hong Kong dollar's peg to the US dollar. Current foreign reserves are approximately 1.6 times the monetary base, ensuring stability after the payout. The Northern Metropolis project was initiated by former Chief Executive Carrie Lam to stimulate growth following protests and the pandemic.