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HKMA Highlights HKD Stability Amid Global Financial Turbulence

HKMA Highlights HKD Stability Amid Global Financial Turbulence

Published:
2025-08-13 09:49:02
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BTCCSquare news:

The Hong Kong Monetary Authority has reaffirmed the resilience of its currency board system as the Hong Kong dollar navigates global market volatility. Between April and June 2025, the HKD maintained its peg within the 7.7500-7.8499 band against the US dollar, supported by robust capital flows through Southbound Stock Connect channels.

Four separate triggering events of the strong-side Convertibility Undertaking in May demonstrated the mechanism's effectiveness, with HK$129.4 billion in liquidity injections stabilizing exchange rates. The resulting abundance of HKD funding created favorable conditions for carry trades, while HIBOR rates decoupled slightly from their USD counterparts due to local liquidity conditions.

|Square

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