HKMA Intervenes for HK$ 4.34 Billion to Stem Hot Money into Hong Kong
Posted on 04/22/2020
The Hong Kong Monetary Authority (HKMA) sold HK$ 1.55 billion (US$ 200.01 million) into the market. This was to bring the exchange rate back within a trading band. The aggregate balance will increase to HK$ 63.42 billion on April 24, 2020. The strengthening of Hong Kong dollar’s exchange rate was driven by increases in market carry-trade activities and equity-related demand for Hong Kong dollars. On April 22, 2020, HKMA intervened in the foreign exchange market again selling HK$ 2.79 billion (US$ 360 million).
The aggregate balance is the key gauge of cash level in the Hong Kong banking system.