HKMA sells HK$13.64bn to keep Hong Kong dollar in trading band

17 Oct, 2015

HONG KONG: The Hong Kong Monetary Authority (HKMA) stepped into the currency market and sold a total of HK$13.64 billion ($1.76 billion) on Friday as the local currency hit the strong end of its trading range.

According to the HKMA, the latest intervention will lift the aggregate balance - the sum of balances on clearing accounts maintained by banks with the authority - to HK$395.143 billion on Oct. 20, when the injected funds will be settled.

The Hong Kong dollar is pegged at 7.8 to the US dollar, but can trade between 7.75 and 7.85. Under the currency peg, the HKMA is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.

Copyright Reuters, 2015

Read Comments