Hong Kong Dollar (HKD)

In this article, We learn about "Hong Kong Dollar (HKD)".Let's Go!

The Hong Kong Dollar (HKD) is the official currency of Hong Kong, the Special Administrative Region of China, located on the southern coast of China.

The Hong Kong dollar was first introduced in 1863, replacing the Indian rupee, Spanish dollar and Chinese yuan as the region's main currency.

The Hong Kong Monetary Authority (HKMA) is responsible for issuing and managing the Hong Kong dollar.

Exchange rate system

The Hong Kong dollar has implemented a linked exchange rate system since 1983.

Under this system, the exchange rate of the Hong Kong dollar and the United States dollar (USD) is pegged within a narrow range, currently set at 7.75 to 7.85 Hong Kong dollars per US dollar.

The HKMA manages the exchange rate by intervening in the foreign exchange market when necessary, buying or selling Hong Kong dollars to maintain the peg.

Segments and Denominations

The Hong Kong dollar is subdivided into 100 smaller units called cents.

Coins are available in 10, 20 and 50 cent denominations, as well as 1, 2, 5 and 10 dollar coins.

Bills are available in denominations of $10, 20, 50, 100, 500 and $1,000.

Economic and Financial Center

Hong Kong has a highly developed and open economy, known for its strong financial services industry, sound legal system and low levels of corruption.

The region is a major international financial center, home to the headquarters of numerous banks, investment companies and other financial institutions.

Hong Kong’s economy also benefits from its strategic location, serving as the gateway between mainland China and the rest of the world.

In addition to financial services, Hong Kong’s economy is driven by tourism, retail and trade.

The region has busy ports that play a vital role in promoting international trade. Hong Kong's economy is known for its flexibility and resilience, often recovering quickly from economic downturns and shocks.

Summary

To summarize, the Hong Kong dollar is the official currency of Hong Kong and is managed by the Hong Kong Monetary Authority.

The currency is subject to a linked exchange rate system, with its value slightly pegged to the U.S. dollar.

The Hong Kong dollar is subdivided into cents, and a variety of banknotes and coins are issued.

Hong Kong has a highly developed and open economy and is a major international financial center, benefiting from its strategic location and diversified economic industries.

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