The Hong Kong government has announced that Eddie Yue will be the new chief executive of the city’s Monetary Authority, from October 1.

Yue, currently deputy chief executive, will replace Norman Chan, who retires in September after 10 years at the helm.

Financial Secretary Paul Chan Mo-po announced the appointment on Thursday, saying that Yue has a deep understanding of Hong Kong’s banking and monetary system, as well as financial markets. He has extensive experience in tackling financial crises, he said.

“His achievements in promoting the HKMA’s reserve management and financial market development in recent years are well recognized. He is the person best suited for this position,” the secretary said.

The financial chief also praised Chan’s contribution, “over the years he has strived to strengthen the city’s monetary and banking systems and promote Hong Kong’s position as an international financial center.”

Eddie Yue, 54, has been working for the de facto central bank of Hong Kong for 26 years. He is the most experienced among the serving deputy chief executives at the HKMA.

Yue began his career as an administrative officer in the Hong Kong Government in 1986. He then joined the HKMA in 1993 as a senior manager and was subsequently promoted to division head a year later.

He was then appointed executive director for corporate service in 2001 and executive director for monetary management and infrastructure in 2004, respectively, before his present position as deputy chief executive since 2007.

The new HKMA head was selected by a panel chaired by the financial secretary with members including Victor Fung, Lawrence Lau, Brian Stevenson and Joseph Yam, the Authority’s first chief executive.

The new chief will be appointed for a term of five years, with annual fixed pay of HK$7 million (US$895,825). He will also get an annual performance-linked variable pay, capped at HK$2.3 million.