I should stress that the experience of the HKSAR Government since its establishment shows that Hong Kong not only enjoys an even higher degree of monetary autonomy after the transfer of sovereignty, but also that its monetary relationship with the Mainland has been handled strictly in accordance with the “one country, two systems” principle. I hope that this will also be your conclusion at the end of this seminar. Hong Kong’s autonomy in formulating its own financial and monetary policies 2. First, let me talk about Hong Kong’s monetary autonomy. Prior to the handover, some people feared that Hong Kong’s monetary autonomy would be eroded. This was quite understandable, since the “one country, two systems” principle was a completely novel concept. However, a comparison between the relevant provisions in the two constitutional instruments applied to Hong Kong before and after the transfer of sovereignty respectively, i.e. the Royal Instructions to the Governor of Hong Kong and the Basic Law, illustrates that Hong Kong’s monetary autonomy has not and will not be eroded. In fact, Hong Kong has enjoyed an even higher degree of monetary autonomy after the transfer of sovereignty. 3. Under the Royal Instructions, the Governor could not assent to “any Bill affecting the Currency of the Colony or relating to the issue of Bank notes”, or “any Bill establishing any Banking Association, or amending or altering the constitution, powers, or privileges of any Banking Association” without previously obtained the approval of the Secretary of State.
In addition, to guarantee that we act in the general interest of the euro area, and not that of individual countries, the central banks of the Eurosystem are all completely independent and free from political influence. This independence is sometimes questioned, but it is a strength: we have to commit over the long term to serving the mandate entrusted to us – price and currency stability. This independence is therefore governed by a strict framework: a clear objective; an obligation to report results regularly to our citizens and to their elected representatives; and a democratic process for the appointment of all senior figures. 4/6  BIS central bankers' speeches  III. What remains to be done, tomorrow, collectively The euro has brought great benefits, in the form of soundness, confidence, unity and sovereignty – as I have endeavoured to remind you. However, it also raises questions, which I have tried to answer, while at the same time underlining that the euro cannot be held responsible for everything that happens. But we have not yet come to the end of the road. We cannot ignore the rising tide of Euroscepticism in Europe, and the extreme case of Brexit. I particularly like this saying, attributed to Dante, one of the great citizens of Florence: “Some wait for time to change, others seize the moment and act.” But what direction should we take? Less Europe?