HKMA says to provide more market liquidity if necessary

Business | 23 Apr 2020 6:28 pm

Hong Kong Monetary Authority deputy chief executive Howard Lee Tat-chi said the HKMA attaches great importance to ensuring adequate liquidity in the banking system and will introduce further measures to provide market liquidity if needed.

Lee wrote in a blog on the HKMA website that the HKMA has conducted four transactions so far selling HK$7.71 billion to the market in exchange for US dollars and the Aggregate Balance in the banking system will increase even further to HK$66.8 billion tomorrow.

"Such increase will considerably expand the liquidity backstop for banks and ensure that HKD interbank activities will continue to operate smoothly."

He added that the HKMA will launch a US Dollar Liquidity Facility on May 6 to make available the USD liquidity obtained from the US Federal Reserve to the Hong Kong banking system.

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