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Hong Kong Monetary Authority

The Hong Kong Monetary Authority (HKMA) was established in April 1993 by merging the Office of the Exchange Fund with the Office of the Commissioner of Banking. The HKMA is responsible for maintaining monetary and banking stability, including maintaining currency stability within the framework of the Linked Exchange Rate system under which the Hong Kong dollar is pegged to the US dollar.

 

Yam stirring up a hornets' nest

Since 1983, when pegging the Hong Kong dollar to the US dollar helped soothe frightened members of the public, some of whom had started to demand payment in US dollars, the linked exchange rate mechanism has been sacrosanct.