The Hong Kong Monetary Authority (HKMA) on Thursday bought 9.42 billion HK dollars (HKD) by selling U.S. dollars (USD) to maintain the stability of the HKD exchange rate.
The move, the first since 2023, was prompted after the weak-side Convertibility Undertaking (CU) of 7.85 HKD to 1 USD under the Linked Exchange Rate System (LERS) was triggered during the New York trading hours Wednesday afternoon (Thursday morning Hong Kong time).
The Aggregate Balance will reduce to 164.1 billion HKD on June 27.
Under the LERS implemented in Hong Kong since 1983, the HKD trades within a normal fluctuation range of 7.75 HKD (strong-side CU) to 7.85 HKD (weak-side CU) per USD.
The strong-side CU was triggered several times in early May, resulting in total inflows of 129.4 billion HKD, according to HKMA. (1 USD equals 7.85 HKD)
(Cover image: Nanfang Daily)
