The Hong Kong dollar traded at 7.8498 per US dollar on Wednesday, hovering near the 7.8500 lower limit of a trading band introduced in 2005. Photo: EPA-EFE

Hong Kong’s monetary authority steps in for the second time in a week to prop up the local dollar as interest rate gap widens

  • The city’s de facto central bank spent HK$3.925 billion (US$500 million) in its latest outing to buy the Hong Kong dollar and keep it within the limits of a trading band
  • A key driver for the deterioration of the local currency is a widening gap between Hong Kong dollars and the US dollar, caused by ample liquidity and lacklustre loans demand in the city’s banking system
Topic |   Hong Kong Monetary Authority (HKMA)

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The Hong Kong dollar traded at 7.8498 per US dollar on Wednesday, hovering near the 7.8500 lower limit of a trading band introduced in 2005. Photo: EPA-EFE
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