The Hong Kong Monetary Authority published its review of Currency Board operations from April 23 to June 22, reporting that Hong Kong dollar exchange and interbank markets remained smooth and orderly. The HKD traded between 7.8289 and 7.8397 per USD, the Convertibility Undertakings were not triggered, and the Aggregate Balance remained stable at about HKD 54 billion. The Monetary Base increased to HKD 2,072.94 billion, with all changes fully matched by foreign reserves under Currency Board principles. Hong Kong’s economy accelerated in the first quarter, supported by stronger domestic and external demand, with momentum continuing into the second quarter. However, the outlook remained exposed to the Middle East conflict, the sustainability of artificial intelligence investment, changing global trade policies and the path of US interest rates. Commercial real estate remained under pressure, although prime Grade A offices showed some improvement. The review also examined the Fast Interface for New Issuance, finding that the platform helped reduce interbank fund transfers associated with initial public offerings and moderate short-term Hong Kong Interbank Offered Rate fluctuations.
Hong Kong Monetary Authority2026-08-07
Hong Kong Monetary Authority reports orderly HKD markets and reduced IPO funding pressures through FINI
The Hong Kong Monetary Authority reported smooth and orderly HKD exchange and interbank markets from April 23 to June 22, with no Convertibility Undertakings triggered and the Aggregate Balance stable at about HKD 54 billion. The Monetary Base rose to HKD 2,072.94 billion and remained fully backed by foreign reserves. The authority also found that FINI reduced IPO-related interbank transfers and moderated short-term HIBOR fluctuations.