The Hong Kong Monetary Authority oversees Hong Kong’s monetary system. It was founded in 1993 when the Office of the Exchange Fund merged with the Office of the Commissioner of Banking. Its responsibilities include maintaining currency stability, monitoring Hong Kong’s banking system and managing the Exchange Fund.
HKMA intervenes again to defend HK dollar peg
The Hong Kong Monetary Authority (HKMA) stepped into the currency market again on Thursday by selling HK$2.3 billion (US$296.77 million) in Hong Kong dollars as the local currency repeatedly hit the top end of its trading range. It was the seventh intervention from the HKMA in two weeks.
According to Reuters data, the latest intervention will lift the aggregate balance – the sum of balances on clearing accounts maintained by banks with the HKMA – to HK$170.755 billion on November 5.
It was the seventh intervention from the HKMA in two weeks.
The Hong Kong dollar is pegged at 7.8 to the US dollar but can trade between 7.75 and 7.85 to the US dollar. Under the currency peg, the HKMA is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.