Hong Kong dollar

The official currency of Hong Kong, issued by three commercial banks and the Hong Kong Monetary Authority under a linked exchange-rate system.

Linked exchange rate system: A monetary arrangement that maintains a currency’s value within a fixed range against another currency. Hong Kong’s system keeps the dollar within a narrow range against the US dollar.
Hong Kong banknote issue: The system through which authorized institutions issue Hong Kong dollar banknotes under monetary authority oversight. Three commercial banks issue most circulating notes under a defined backing arrangement.
Hong Kong dollar history: The development of Hong Kong’s currency from its introduction in the nineteenth century to the present. Its successive exchange-rate regimes explain how the current system emerged.
Foreign exchange market: A global market where currencies are traded and exchange rates are determined. Trading keeps the Hong Kong dollar near the bounds of its linked-rate range.
Renminbi: The official currency of the People’s Republic of China, issued by the People’s Bank of China. Unlike the Hong Kong dollar, it is not governed by Hong Kong’s linked exchange-rate system.
Hong Kong Monetary Authority: Hong Kong’s government authority responsible for monetary and financial stability. It manages the linked exchange rate and issues banknotes alongside commercial banks.
Hong Kong dollar coinage: The coins denominated in Hong Kong dollars and cents, issued by the Hong Kong Monetary Authority. Coins are issued by the authority rather than by the three commercial note-issuing banks.
Hong Kong currency crisis of 1983: A financial crisis that prompted Hong Kong to adopt a linked exchange-rate system in 1983. The crisis led directly to the currency’s modern link with the US dollar.
Hong Kong dollar peg: The Hong Kong dollar’s fixed relationship with the US dollar, maintained within a narrow trading band. The peg is the arrangement most often encountered in currency conversion and market reporting.
Singapore dollar: The official currency of Singapore, managed against a basket of currencies through an exchange-rate policy. Its managed-float framework contrasts with Hong Kong’s narrow US-dollar link.

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