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HKMA purchases HK$ 1.6 billion from market as currency strikes weak end of trading band

Byadmin2

May 11, 2022
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HONG KONG: Hong Kong’s de-facto reserve bank purchased HK$ 1.586 billion ($ 202 million) from the marketplace on Thursday to stop the regional currency weakening and breaking its peg to the U.S. dollar, the very first time it has actually intervened in eighteen months.

The Hong Kong dollar is pegged to a tight band of in between 7.75 and 7.85 versus the U.S. dollar.

It has actually been softening in current months as U.S. rate of interest increase while a surfeit of money in the regional banking system has actually kept Hong Kong rates selected.

The aggregate balance – the crucial gauge of money in the banking system – will reduce to HK$ 336.005 billion on May 13, an HKMA spokesperson stated on Thursday.

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