Hong Kong Dollar - Linked Exchange Rate System

Linked Exchange Rate System

Most traded currencies by value
Rank Currency ISO 4217 code
(Symbol)
% daily share
(April 2010)
1  United States dollar USD ($) 84.9%
2  Euro EUR (€) 39.1%
3  Japanese yen JPY (¥) 19.0%
4  Pound sterling GBP (£) 12.9%
5  Australian dollar AUD ($) 7.6%
6  Swiss franc CHF (Fr) 6.4%
7  Canadian dollar CAD ($) 5.3%
8 Hong Kong dollar HKD ($) 2.4%
9  Swedish krona SEK (kr) 2.2%
10  New Zealand dollar NZD ($) 1.6%
11  South Korean won KRW (₩) 1.5%
12  Singapore dollar SGD ($) 1.4%
13  Norwegian krone NOK (kr) 1.3%
14  Mexican peso MXN ($) 1.3%
15  Indian rupee INR 0.9%
Other 12.2%
Total 200%

The primary monetary policy objective of the Hong Kong Monetary Authority is to maintain exchange rate stability within the framework of the linked exchange rate system through sound management of the Exchange Fund, monetary operations and other means deemed necessary.

The important underpinnings of the linked exchange rate system include the strong official reserves of Hong Kong, a sound and robust banking system, fiscal prudence and a flexible economic structure.

In 2007, Jim Rogers, a former partner in George Soros's Quantum Fund, said the Government should abolish the Hong Kong dollar and adopt the yuan as the official currency of the territory when the renminbi is freely convertible.(the renminbi is not freely convertible.) However, in the same year, Rogers changed his position and believe the Hong Kong Government should adopt the renminbi even when it is non-freely convertible. "This is 2007; I don't know why the Hong Kong dollar exists any more.... You have a gigantic neighbor who is becoming the most incredible economy in the world." Rogers also believes the renminbi is going to replace the US dollar as world reserve currency.

Current HKD exchange rates
From Google Finance: AUD CAD CHF EUR GBP JPY USD INR CNY TWD
From Yahoo! Finance: AUD CAD CHF EUR GBP JPY USD INR CNY TWD
From XE.com: AUD CAD CHF EUR GBP JPY USD INR CNY TWD
From OANDA.com: AUD CAD CHF EUR GBP JPY USD INR CNY TWD
From fxtop.com: AUD CAD CHF EUR GBP JPY USD INR CNY TWD

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