HKD
A common acronym for the Hong Kong dollar, which is the currency of Hong Kong. It is pegged to the U.S. dollar through the use of a linked exchange rate system, where US$1 is kept in a range of HKD$7.75-$7.85.
Three Chinese note-issuing banks are authorized to issue Hong Kong dollas, subject to conditions laid out by the Hong Kong government. Banknotes then run through a government exchange fund which holds the U.S. dollars in reserves and records all transactions in the general accounts of the two currencies. Investopedia Says:
To ensure they can always keep this parity with the U.S. dollar, the Hong Kong Monetary Authority (HKMA) has to keep huge foreign exchange reserves, in amounts totalling several times the actual amount of money in circulation. The HKMA also uses other open market operations and a robust international banking system to keep the supply of Hong Kong dollars under tight restraints. Related Terms:
Currency
Floating Exchange Rate
Forex - FX
Hang Seng
Hard Currency HKD
A common acronym for the Hong Kong dollar, which is the currency of Hong Kong. It is pegged to the U.S. dollar through the use of a linked exchange rate system, where US$1 is kept in a range of HKD$7.75-$7.85.
Three Chinese note-issuing banks are authorized to issue Hong Kong dollas, subject to conditions laid out by the Hong Kong government. Banknotes then run through a government exchange fund which holds the U.S. dollars in reserves and records all transactions in the general accounts of the two currencies. Investopedia Says:
To ensure they can always keep this parity with the U.S. dollar, the Hong Kong Monetary Authority (HKMA) has to keep huge foreign exchange reserves, in amounts totalling several times the actual amount of money in circulation. The HKMA also uses other open market operations and a robust international banking system to keep the supply of Hong Kong dollars under tight restraints. Related Terms:
Currency
Floating Exchange Rate
Forex - FX
Hang Seng
Hard Currency |