US EditionHong Kong authority intervenes in market to check local currency's rise
- On May 2, 2025, the HKMA purchased approximately US$6 billion in US dollars to prevent the Hong Kong dollar from strengthening beyond its allowed trading range in the city’s foreign exchange market.
- The intervention, the first since 2020 and about five years since the last US dollar purchase, responded to the local currency strengthening above its 7.75-7.85 peg range amid capital inflows from equity investments.
- The HKMA sold HK$46.54 billion around the 7.75 exchange rate to push back the local dollar reaching the strong end of its convertibility band.
- An HKMA spokesperson said the Hong Kong dollar's strength is mainly due to increased demand linked to equity investment activities, and the central bank pledged to monitor markets carefully.
- This action suggests that the HKMA will continue interventions if needed, especially if US interest rate cuts prompt further capital inflows, to maintain orderly currency and financial markets.
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16 Articles
The Hong Kong Monetary Authority spent about HK$46.539 billion ($6 billion) buying the US currency, its largest daily purchase since records began in 2004, according to data compiled by Bloomberg...
Hong Kong authority intervenes in market to check local currency's rise
Hong Kong's de-facto central bank said it sold HK$46.54 billion ($6 billion) into the market on Saturday to prevent the local currency from strengthening beyond its official peg to the U.S. dollar, the first such intervention in more than four years.
HKD Hits Strong-side Convertibility Undertaking, HKMA Steps in to Buy USD for First Time in Over Four Years - YT FINANCE
The Hong Kong dollar (HKD) has recently touched the strong-side convertibility undertaking against the US dollar, prompting the Hong Kong Monetary Authority (HKMA) to purchase US dollars and sell Hong Kong dollars to maintain exchange rate stability for the first time in four years.
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