One of the most interesting things going on here in Hong Kong at the moment is the gradual displacement of the US dollar, and even the local Hong Kong dollar, by the Chinese Yuan.

Walking around town, the signs are obvious:  from shops that gladly accept Chinese Yuan cash for the goods they sell, to the money changers which now ALL display the Hong Kong dollar / Chinese Yuan  cross-rate much more prominently than the US dollar / Hong Kong dollar cross rate.

In many ways, this is a live economic experiment.

Hong Kong has long had one of the world’s freest, most sophisticated economies; residents are free to choose what currency to accept (and save), whether HK dollars, US dollars, Chinese Yuan, gold, or anything else.

Multi-currency bank accounts are the rule rather than the exception here, and you can switch freely between all of them with a few mouse clicks, or phone call.  This is one of the reasons why Simon has always been so keen to recommend banking in Hong Kong.

Yuan-denominated deposits in Hong Kong banks have more than TRIPLED this year as people look for ways to protect their purchasing power.