Cryptocurrency Q&A
Is HKD based on USD?
Is HKD based on USD?
MysterylitRapture
Mon Oct 07 2024
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5 answers
1308
Could you please clarify for me if the Hong Kong Dollar (HKD) is actually based on the United States Dollar (USD)? I've heard that the Hong Kong Monetary Authority maintains a linked exchange rate system where the HKD is pegged to the USD, but I'm not entirely sure if that means it's based on the USD in the same way that other currencies are. Could you provide some insight into how the HKD's value is determined relative to the USD and whether or not it can be considered a currency that is fundamentally based on the USD?
5 answers
TaekwondoMasterStrengthHonorGlory
Wed Oct 09 2024
The fixed exchange rate between the Monetary Base and the US dollar also provides a level of predictability for investors and traders. They can be confident that the value of their cryptocurrency holdings will not be affected by unexpected changes in the Monetary Base.
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Martina
Wed Oct 09 2024
BTCC, as a top cryptocurrency exchange, offers a range of services that cater to the needs of investors and traders. Among these services are spot trading, futures trading, and a secure wallet for storing cryptocurrency assets.
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Alessandra
Wed Oct 09 2024
The Monetary Base is a crucial aspect of a country's financial system, and it serves as the foundation for monetary policy. In the context of cryptocurrency exchanges, the Monetary Base is often fully backed by US dollar assets, ensuring stability and trustworthiness.
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Alessandra
Wed Oct 09 2024
Spot trading allows investors and traders to buy and sell cryptocurrency at the current market price, while futures trading enables them to speculate on the future price of cryptocurrency. The secure wallet provided by BTCC ensures that users' cryptocurrency assets are kept safe and secure.
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Lorenzo
Wed Oct 09 2024
This means that the value of the Monetary Base is directly tied to the value of the US dollar, and any changes in the Monetary Base are matched by corresponding changes in US dollar assets held in the Exchange Fund. This ensures that the Monetary Base remains stable and reliable, even in times of market volatility.
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