Hong Kong Dollar (HKD)

Reuters  Apr 21  Comment 
The Hong Kong Monetary Authority (HKMA) stepped into the currency market for a second time on Monday, selling an aggregate HK$11.586 billion ($1.49 billion) in Hong Kong dollars in New York trading hours as the local currency hit the strong end of...
Mondo Visione  Apr 16  Comment 
Hong Kong Futures Exchange Limited (HKFE), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has announced that with effect from the commencement of trading on Monday, 20 April 2015, the minimum margins to be collected...
MarketWatch  Apr 9  Comment 
The Hong Kong Monetary Authority recently bought $400 million in the foreign-exchange market to weaken its own currency, the Hong Kong dollar, Dow Jones Newswires reported Thursday. The central bank acted to weaken the Hong Kong dollar, which had...
Forbes  Mar 30  Comment 
The amount of money spent on a wedding by a Hong Kong couple has reached a record high. In 2014, couples spent more than 311,887 Hong Kong dollars ($40,218 U.S. dollars) on average to tie the knot, according to the latest survey from EDSLife, a...
Benzinga  Feb 27  Comment 
New World Development Co. Ltd. (OTC: NDVLY) reported a 29% rise in its net profit for the July-December period. The Central, Hong Kong-based company's net profit for the period surged to 5.85 billion Hong Kong dollars ($755 million), versus a...
Wall Street Journal  Jan 23  Comment 
Some investors seem to think the Hong Kong dollar is vulnerable to a Swiss-franc like strengthening. They are wasting their dollars betting on it.
Euromoney  Jan 21  Comment 
The Hong Kong dollar’s peg to the US dollar has, once again, come under scrutiny after the Swiss National Bank’s (SNB) removal of its currency’s floor roiled currency markets globally.
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%...


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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