Hong Kong Dollar (HKD)

QUOTE AND NEWS
Forbes  Dec 18  Comment 
Share price of BYD, a Chinese electric cars company backed by Warren Buffett, has seen a wild swing in the afternoon trading hours on Thursday. The stock closed at HKD 25.05 per share, down 28.8% from the opening price of HKD 36.2 per share. At...
Mondo Visione  Nov 25  Comment 
On 1 December 2014, Moscow Exchange will start trading of two new currency pairs, GBP/RUB and HKD/RUB, with today and tomorrow settlement and as overnight swaps. Like other currency pairs available on Moscow Exchange, the new...
Mondo Visione  Nov 21  Comment 
Hong Kong Exchanges and Clearing Limited today (Friday) issued the following market statistics in response to media enquiries:   Northbound Trading Southbound Trading Daily quota balance RMB 10,659 mil (18.0%...
Mondo Visione  Nov 20  Comment 
Hong Kong Exchanges and Clearing Limited today (Thursday) issued the following market statistics in response to media enquiries:   Northbound Trading Southbound Trading Daily quota balance RMB 10,724 mil (17.5%...
Mondo Visione  Nov 19  Comment 
Hong Kong Exchanges and Clearing Limited today (Wednesday) issued the following market statistics in response to media enquiries:   Northbound Trading Southbound Trading Daily quota balance RMB 10,388 mil (20.1%...
Mondo Visione  Nov 18  Comment 
Hong Kong Exchanges and Clearing Limited today (Tuesday) issued the following market statistics in response to media enquiries:   Northbound Trading Southbound Trading Daily quota balance RMB 8,155 mil (37% used) RMB...
newratings.com  Oct 26  Comment 
HONG KONG (dpa-AFX) - Asia will release September figures for imports, exports and trade balance, highlighting a light day for Asia-Pacific economic activity. In August, imports were worth 358.75 billion Hong Kong dollars and exports were at...




RELATED WIKI ARTICLES
 

The Hong Kong Dollar is the currency of the Chinese SAR of Hong Kong. It is denoted with a leading $, though in an international context the $ is often appended to an "HK" to distinguish the currency from other dollars. For example, within Hong Kong $48 is read "forty-eight dollars," while in an international context the same value might be written HK$48 and read "forty-eight Hong Kong dollars".

The chart at left shows the USD/HKD Currency Pair; the number of Hong Kong Dollars equivalent to 1 U.S. Dollar (USD).


Linked Exchange Rate System

Pegged exchange to US Dollar (1USD = 7.80HKD)

The linked exchange rate system of Hong Kong was launched on 17 October 1983, in reaction to a currency crisis arising from the Sino-British dispute concerning the political future of Hong Kong after 1997. The Hong Kong dollar was floating rapidly downwards, indeed plunging, in the foreign exchange market at that time, and the local authorities were desperate to find a solution to save it.

The solution, i.e. the linked exchange rate system, or simply the "link" which pegged the Hong Kong dollar to the US dollar at the rate of 7.80, was not a new invention. It was in essence a resurrection of the "currency board" scheme adopted in the territory from 1935 to 1972, with some modifications.

A bank can issue a Hong Kong dollar only if it has the equivalent exchange in US dollars on deposit. The currency board system ensures that Hong Kong's entire monetary base is backed with US dollars at the linked exchange rate. The resources for the backing are kept in Hong Kong's exchange fund, which is among the largest official reserves in the world. Hong Kong also has huge deposits of US dollars, with the 2008 estimate being at over US$ 700 billion

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