HKMA buys more HKD to avoid breaking USD peg

Hong Kong’s de-facto central bank, the Hong Kong Monetary Authority (HKMA), bought another HK$903 million (US$115.05 million) from the market in New York trading hours to stop the local currency from weakening and breaking its peg to the U.S. dollar.  

This is after the HKMA bought HK$20 billion worth of the local currency earlier this month to keep its value within the 7.75-7.85 per dollar-trading band  

The Hong Kong dollar is pegged to a tight band of between 7.75 and 7.85 versus the U.S. dollar.  

The aggregate balance - the key gauge of cash in the banking system - will decrease to HK$56.261 billion on April 18, an HKMA spokesperson said on Saturday morning. (US$1 = 7.8486 Hong Kong dollars)  

(Staff and agencies)