The Hong Kong Monetary Authority (HKMA) sold 9.4 billion HKD, approximately 1.2 billion USD, to curb the declared drop in the Hong Kong dollar. This action drains liquidity and raises interbank lending rates, following previous measures that supplied cash to the banking system.
Despite market volatility, the HKMA aims to maintain the HKD within the band of 7.75 to 7.85 HKD per USD. Chief Executive John Lee Ka-chiu emphasized the importance of the peg as a success factor, aiming to reassure investors of monetary stability.
Leave a Reply