Cryptocurrency Q&A
Is USD to HKD fixed?
Is USD to HKD fixed?
KDramaLegendaryStarlightFestival
Sun Oct 06 2024
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7 answers
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Hello there, I'm curious about the exchange rate between the US Dollar (USD) and the Hong Kong Dollar (HKD). Could you please clarify if the exchange rate between the two currencies is fixed or does it fluctuate over time? If it does fluctuate, what factors typically influence its movement? Understanding this would greatly help me in my financial planning and decision-making processes. Thank you in advance for your insights!
7 answers
Elena
Tue Oct 08 2024
This pegged exchange rate system ensures predictability and stability for investors and businesses alike. When the market-determined exchange rate falls below 7.80, the HKMA steps in to stabilize the rate.
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henry_harrison_philosopher
Tue Oct 08 2024
During such instances, banks can request the HKMA to convert their US dollar holdings into Hong Kong dollars. This action effectively increases the supply of Hong Kong dollars in the market.
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SamsungSpark
Tue Oct 08 2024
As the supply of Hong Kong dollars increases, the market-driven exchange rate begins to climb back towards the 7.80 parity level. This mechanism automatically corrects any deviations from the fixed exchange rate.
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IncheonBlues
Tue Oct 08 2024
The HKMA's intervention not only maintains the stability of the exchange rate but also supports the city's monetary policy objectives. It ensures that the Hong Kong dollar remains a strong and reliable currency.
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Maria
Tue Oct 08 2024
The Hong Kong Monetary Authority (HKMA) maintains a crucial role in the city's financial stability, specifically with regards to the exchange rate between the US dollar and Hong Kong dollar. The HKMA guarantees the conversion rate of these two currencies at a fixed parity of 7.80.
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