This new index introduces two new currencies, the Remnimbi and the Hong Kong Dollar to supplement the earlier currency basket that includes the US Dollar, Pound Sterling, Euro, and the Japanese Yen (Reddy, 2005). In the post-Asian crisis period, several Asian economies have adopted different types of intermediate exchange rate regimes with a growing preference for relatively more flexible exchange rates than before.
The Macao enterprise can pledge its assets to a Macao bank who will provide a guarantee to Mainland bank who intends to provide the credit to the Macao enterprise. When a Mainland enterprise operates in Macao, the same model can be adopted.