Carlo
Sun Jun 09 2024
|
6 answers
1305
What is the Hong Kong dollar backed by?｜ensures that Hong Kong's entire monetary base is backed with US dollars at the linked exchange rate. The resources for the backing are kept in Hong Kong's exchange fund, which is among the largest official reserves in the world.The currency board system
Could you explain what exactly backs the Hong Kong dollar? Is it simply supported by the US dollar at a fixed exchange rate? And how does this arrangement ensure the stability of Hong Kong's monetary base? Also, I'm curious about the exchange fund in Hong Kong - is it where the resources for backing are stored? And how does this fund rank globally in terms of its size and significance? Finally, could you elaborate on the currency board system and its role in maintaining the value of the Hong Kong dollar?
