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2 years ago
HKMA sells HK$4.7 bln to keep Hong Kong dollar in trading band
October 20, 2015 / 9:49 AM / 2 years ago

HKMA sells HK$4.7 bln to keep Hong Kong dollar in trading band

HONG KONG, Oct 20 (Reuters) - The Hong Kong Monetary Authority (HKMA) stepped into the currency market and sold HK$4.65 billion ($600 million) in Hong Kong dollars on Tuesday afternoon as the local currency hit the strong end of its trading range.

According to the HKMA, the latest intervention will lift the aggregate balance - the sum of balances on clearing accounts maintained by banks with the authority - to HK$394.794 billion on Oct. 23, when the injected funds will be settled.

Hong Kong financial markets will be closed on Wednesday for a public holiday.

The Hong Kong dollar is pegged at 7.8 to the U.S. dollar, but can trade between 7.75 and 7.85. Under the currency peg, the HKMA is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.

$1 = 7.7500 Hong Kong dollars Reporting by Christina Lo and Twinnie Siu; Editing by Richard Borsuk

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