The Hong Kong Monetary Authority published the record of discussion of the Exchange Fund Advisory Committee Currency Board Sub-Committee, alongside its report on Currency Board operations covering 25 December 2024 to 16 April 2025. The Sub-Committee noted that the Hong Kong dollar and interbank markets traded smoothly and orderly, with the Hong Kong dollar remaining within the Convertibility Zone and the Convertibility Undertakings not being triggered. During the review period, the Hong Kong dollar traded between 7.7555 and 7.7927 per US dollar, with moves linked to shifts in liquidity conditions, global risk sentiment around US tariff announcements, local equity market performance and Southbound Stock Connect inflows. Hong Kong dollar interbank rates continued to track US dollar rates, while shorter-tenor rates were also influenced by local supply and demand; the Aggregate Balance was stable at around HKD 45 billion and no abnormality was noted in use of the Discount Window. The Monetary Base increased to HKD 1,980.99 billion by the end of the period, with changes fully matched by changes in foreign reserves in line with Currency Board principles. The Sub-Committee also reviewed risks and vulnerabilities, citing intensified global downside growth risks following US reciprocal tariffs, a Mainland China outlook shaped by pro-growth signals and rising external headwinds, and heightened downside risks to Hong Kong growth alongside mixed domestic indicators including improved housing transaction momentum in March and subdued commercial real estate conditions, particularly in offices; a paper on “Discount Window stigma” found more frequent usage and a diminished stigma effect compared with 2018–2020, coinciding with the HKMA’s recent proactive communications with banks.

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