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

Read more about this topic:  Hong Kong Dollar

Famous quotes containing the words linked, exchange, rate and/or system:

    The sensual and spiritual are linked together by a mysterious bond, sensed by our emotions, though hidden from our eyes. To this double nature of the visible and invisible world—to the profound longing for the latter, coupled with the feeling of the sweet necessity for the former, we owe all sound and logical systems of philosophy, truly based on the immutable principles of our nature, just as from the same source arise the most senseless enthusiasms.
    Karl Wilhelm Von Humboldt (1767–1835)

    I live in my house as I live inside my skin: I know more beautiful, more ample, more sturdy and more picturesque skins: but it would seem to me unnatural to exchange them for mine.
    Primo Levi (1919–1987)

    If you could choose your parents,... we would rather have a mother who felt a sense of guilt—at any rate who felt responsible, and felt that if things went wrong it was probably her fault—we’d rather have that than a mother who immediately turned to an outside thing to explain everything, and said it was due to the thunderstorm last night or some quite outside phenomenon and didn’t take responsibility for anything.
    D.W. Winnicott (20th century)

    Each generation’s job is to question what parents accept on faith, to explore possibilities, and adapt the last generation’s system of values for a new age.
    Frank Pittman (20th century)