The Hong Kong Monetary Authority (HKMA) has reaffirmed its commitment to the Linked Exchange Rate System, ensuring the Hong Kong dollar’s stability against the US dollar. This announcement follows recent observations of capital movements within the Hong Kong market.

The HKMA emphasized its readiness to intervene in the foreign exchange market to maintain the peg within its permitted trading band of 7.75 to 7.85 Hong Kong dollars per US dollar. The authority possesses substantial foreign exchange reserves to defend the currency peg.

Market analysts have noted the HKMA’s consistent approach to managing the currency peg, which has been in place since 1983. The system is considered a cornerstone of Hong Kong’s financial stability.

The HKMA continues to monitor global economic conditions and their potential impact on Hong Kong’s financial markets. They are prepared to take appropriate measures to safeguard the stability of the Hong Kong dollar and the overall financial system.