Hong Kong Buys HK$11.697 Billion to Defend Currency Peg System
Comment of the Day

October 13 2022

Commentary by Eoin Treacy

Hong Kong Buys HK$11.697 Billion to Defend Currency Peg System

The Hong Kong Monetary Authority buys HK$11.697 billion ($1.5 billion) to manage the city’s currency peg for Oct. 14 settlement, according to the de facto central bank’s page on Bloomberg.

Aggregate balance will decrease to about HK$106.6 billion on Oct. 14

Eoin Treacy's view

The strength of the Dollar and the Fed’s policy of raising rates has put a lot of pressure on the Hong Kong Monetary Authority to sustain the Hong Kong Dollar’s peg. The rate has been bumping up against the HK7.85 level for much of the last year in a repeat of the 2018/19 weakness.

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