HKD To USD: Convert Hong Kong Dollar to United States Dollar

In 1972, the HK dollar was pegged to the U.S. dollar at a rate of HK$5.65 to $1 USD. Since then, it has remained pegged to the dollar, with the HKMA adjusting its value from time to time. The Hong Kong dollar has been pegged to a narrow trading band, which currently ranges between HK$7.7500 and HK$7.8500 per USD.

How to convert Hong Kong dollars to US dollars

This trading band versus the USD has been in place since 1983, although the upper and lower limits have been adjusted periodically. The HKMA has about $450 billion+ USD in foreign reserves to thwart any attempts to break the peg with the USD. One notable attempt was made by legendary hedge fund manager George Soros in 1998. The Hong Kong dollar was first seen as a distinct currency in 1863. Before then, various foreign currencies had been used and continued to be used even after the HKD’s inception. The Hong Kong dollar was outlawed by the Japanese puppet government in 1943 and reinstated in 1945 after World War II.

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As of today, the How to buy eth with paypal three commercial banks, HSBC, Bank of China and Standard Chartered issue their own designs of banknotes in denominations of HK$20, HK$50, HK$100, HK$500 and HK$1,000, with all designs being similar to the other in the same denomination of banknote. While only the HK$10 banknote is issued solely by Hong Kong Monetary Authority on behalf of the Government of Hong Kong, which in total makes up the banknote circulation arrangement to four different note issuers. By 1895, the circumstances had changed to the extent that there was now a dearth of Spanish/Mexican dollars and the authorities in both Hong Kong and the Straits Settlements were putting pressure on the authorities in London to take measures to have a regular supply of silver dollar coins. London eventually acquiesced and legislation was enacted in attempts to regulate the coinage.

1. Hong Kong is a leading global financial center and its economy is considered to be the freest in the world.
2. During Japanese occupation the Dollar was temporarily suspended, replaced by the Japanese Military Yen.
3. The currency code for Dollars is HKD, and the currency symbol is $.
4. One of the key roles of the HKMA is maintaining currency stability.
5. As of today, the three commercial banks, HSBC, Bank of China and Standard Chartered issue their own designs of banknotes in denominations of HK$20, HK$50, HK$100, HK$500 and HK$1,000, with all designs being similar to the other in the same denomination of banknote.
6. The Hong Kong dollar was outlawed by the Japanese puppet government in 1943 and reinstated in 1945 after World War II.

Early 20th century

Our currency rankings show that the most popular Hong Kong Dollar exchange rate is the HKD to USD rate. The currency code for Dollars is HKD, and the currency symbol is $. Below, you’ll find Hong Kong Dollar rates and a currency converter. The HKD is the ninth most traded currency, and because it is pegged to the U.S. dollar, with upper and lower limits, it does not exhibit any strong unique correlations with other currencies. HKD is the abbreviation for the Hong Kong dollar, the official currency of Hong Kong, which is one of the most traded currencies globally. The HKD is used in both Hong Kong and the neighboring territory of Macau, whose currency, the pataca, is pegged to the Hong Kong dollar.

If, and when, the HKD hits either the upper or lower bound, the HKMA, which acts as the de facto central bank, intervenes to stabilize the currency. In 1960, cupro-nickel 1-dollar coins were introduced, these were then reduced in size in 1978. They were followed in 1975 by nickel-brass 20 cents and cupro-nickel 2-dollar coin (both scallop shaped) and, in 1976, by decagonal, cupro-nickel 5-dollar coin, changed to a round thicker shape in 1980.

Established in 1993, the Hong Kong Monetary Authority is the central bank of the island and acts to control inflation and maintain the stability of the Hong Kong dollar (HKD) and of the banking sector through its monetary policy. Commemorative banknotes have also been issued celebrating the note-issuing banks’ anniversaries as well as the Olympic Games held in Beijing in 2008 and 2022. HSBC, Bank of China and Standard Chartered officially introduced a new series of banknotes on New Year’s Day (1 January) 1993 at stroke of midnight HKT in denominations of $10, $20, $25, $50, $100, $500 and $1000. In 1975, the HK$5 notes were replaced by coins, whilst HK$1,000 notes were introduced in 1977.

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In 1945, paper money production resumed essentially unaltered from before the war, with the government issuing 1 cent, 5 cents, 10 cents, and 1-dollar notes, and the three banks issuing 5, 10, 50, 100 and 500-dollar notes. 1-dollar notes were replaced by coins in 1960, with only the 1-cent note issued by the government after 1965. When Hong Kong was established as a free trading port in 1841, there was no local currency in everyday circulation. Financially, the currency peg npbfx forex broker was designed not to require the Bank of England to lend its reserves to maintain Hong Kong’s currency peg.

Hong Kong is now in sole control of the printing and administration of its currency, which is controlled by the Hong Kong Monetary Authority (HKMA). The Hong Kong dollar is made up of 100 cents and is often shown with the HK$ prefix to differentiate it from other dollar-denominated currencies. Hong Kong is a leading global financial center and its economy is considered to be the freest in the world. On New Year’s Day (1 January) 1993 at stroke of midnight HKT, HSBC, Bank of China and Standard Chartered officially introduced all new banknote designs. As of 18 May 2005, in addition to the lower guaranteed limit, a new upper guaranteed limit was set for the Hong Kong dollar at HK$7.75 to the US dollar.

Banks and traditional providers often have extra costs, which they pass to you by marking up the exchange rate. Three Chinese note-issuing banks—Hong Kong and Shanghai Banking Corporation Limited, the Bank of China (Hong Kong) Limited, and the Standard Chartered Bank (Hong Kong) Limited—are also authorized to issue axi forex broker Hong Kong dollars, subject to conditions laid out by the Hong Kong government. Banknotes are then run through a government exchange fund that holds U.S. dollars in reserves and records all transactions in the general accounts of the two currencies. Under capital control laws, a bank can only use HK dollars if it has the equivalent value of U.S. dollars on deposit. In 1845, the first private bank, the Oriental Bank, was founded. However, banknotes were not produced until the 1860s, when the Oriental Bank, the Chartered Bank of India, Australia and China and the Hong Kong and Shanghai Banking Corporation began issuing notes.