US EditionHong Kong Intervenes to Defend Currency Peg
- The Hong Kong Monetary Authority intervened on June 26, 2025, buying HK$9.42 billion to support the Hong Kong dollar in Asia.
- The intervention followed heightened volatility and speculation about the currency peg, which has been maintained since 1983 under a Linked Exchange Rate System.
- The HKMA acted to prevent the exchange rate from hitting the weak end of its HK$7.75-7.85 per US dollar trading band, amid swings between both ends of this range.
- The intervention reduced the HKMA's aggregate balance to HK$164 billion and raised the one-month Hibor rate to 0.97%, marking the highest level since May 19, 2025.
- The HKMA's move aims to raise funding costs for carry trades and maintain investor confidence, while Chief Executive John Lee reaffirmed Hong Kong’s commitment to the currency peg.
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HKMA Addresses Concerns Over Hong Kong Dollar Weakness Amid Exchange Rate Trigger – MAXBIT
Tony Kim Jun 25, 2025 20:33 The Hong Kong Monetary Authority responds to the triggering of the weak-side Convertibility Undertaking, affecting the Hong Kong dollar’s stability and market dynamics. The Hong Kong Monetary Authority (HKMA) has issued a statement in response to recent media inquiries regarding the triggering of the weak-side Convertibility Undertaking (CU) under...
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Leaning Left1Leaning Right1Center3Last UpdatedBias Distribution60% Center
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60% Center
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C 60%
R 20%
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