It’s one of the most recognizable and widely used currencies in Asia thanks to Hong Kong’s venerated status as a global financial hub, one that connects both the East and West. Low limits are set on how much RMB you can change to a foreign currency in a single day in China itself. ATMs can be found on almost city street, at bank offices, by supermarkets, next to many convenience stores, and in metro stations. They take international cards and have instructions in English and Chinese. Generally, people can withdraw in amounts of 300 USD or 400 USD (4,000 HKD).
- The beauty of the peg is that it provides consistency in international transactions, trade, and investment, and remains protected and resilient to speculative global pressures and movement.
- HKD-denominated bonds are issued by the Hong Kong government, corporations, and supranational entities.
- This change had a profound impact on Hong Kong’s economy, making it more vulnerable to external economic shocks.
- This beautiful new addition to the most recent bank note series is an homage to Hong Kong’s tradition of the Cantonese Opera.
Related articles about the Hong Kong Dollar
HKD is the abbreviation for the doble techo trading 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. The HKMA’s role in managing the peg and maintaining monetary stability is crucial for Hong Kong’s financial sector.
The outer ring of the Hong Kong $10 coin is nickel-brass while the inner core is copper-nickel. I can’t say in my nearly 7 years living in Hong Kong that I’ve ever heard any cashier, service worker, or even friend refer to it as ‘Hong Kong Dollars’. It’s just widely accepted that you’re talking about HKD when referring to amounts, so ‘dollar/dollars’ would be what you commonly hear used in English.
What Currency Does Hong Kong Use? A Complete Guide to the Hong Kong Dollar
The best rates are usually found withdrawing the local currency from an ATM on arrival at your destination. These will charge a commission – usually around 4% – but tend to have a better rate. HKD-denominated derivatives, including futures, options, and swaps, are actively traded for hedging and speculative purposes.
Any sizable town of a few thousand people will have ATMs available to use. The HKMA holds one of the world’s largest currency reserves in relation to its economy. She holds a Bachelor of Science in Finance degree from Bridgewater State University and fxtm broker reviews helps develop content strategies. In British Weihaiwei, the Hong Kong dollar circulated jointly with the Chinese yuan from 1914 to 1930, when Weihaiwei was returned to the Republic of China.
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Learn about Australian Dollar to Jamaican Dollar currency exchange rates, conversion tools, and tips for a smooth transaction. Get the latest exchange rates & expert insights on Canadian Dollar to Bahamian Dollar conversions, travel, and business transactions. The PRC, established by the Chinese Communist Party in 1949, needed foreign currency for international trade with non-Soviet bloc countries. The Hong Kong government operated a dual system with the sterling area and a free exchange market with the US dollar, which was technically illegal from 1949 to 1967. This is a currency exchange that I’ve used for several years and is incredibly popular with both locals and foreigners alike due to its fair and reasonable rates and long operating hours (including Sundays). This ‘peg’ was introduced to stabilize the currency, particularly with the 1997 Handover of Hong Kong back to China in mind.
Where Can You Buy and Sell Hong Kong Dollars?
It’s quite a funny term to describe money as it translates to ‘mosquito’. This would be more comparable to the United States’ use of ‘buck’ as slang for a dollar. Simply put, 幣 (Bái) means ‘currency’ or ‘money’, while 港 (Góng) represents ‘Hong Kong’. Hong Kong is a special administrative region (SAR) of China that has its own currency, which is called the Hong Kong Dollar. Private car and driver might be the best option if you want to do a lot of touring, business, or sightseeing in Hong Kong. A private driver or aid from an English speaking guide/interpreter is relatively inexpensive compared to Western countries and Japan.
ATM Facilities in Hong Kong
The peg axes forex broker review is actively kept, meaning that the HKMA intervenes in foreign exchange when necessary, buying or selling Hong Kong Dollars to keep the exchange rate within the prescribed range. It may fluctuate slightly, commonly oscillating between HK$7.75 and HK$7.85 depending on global financial and economic activity. The Hong Kong dollar, the ninth most traded currency globally, is not a floating currency.
- In Hong Kong, when referring to the Hong Kong currency, both locals and foreigners usually just call it the dollar.
- Our currency rankings show that the most popular Hong Kong Dollar exchange rate is the HKD to USD rate.
- The dollar is divided into 100 cents, and each 10 cents is called a «houh».
- We have major, minor, and over 20 exotic currencies that you can exchange online.
This dynamic was evident in 2022 and 2023 when aggressive Fed rate hikes led to capital outflows, prompting the HKMA to intervene by buying HKD to maintain the peg. The peg has faced pressure during financial crises and shifts in U.S. monetary policy. During the 1997 Asian Financial Crisis, speculators attempted to force a devaluation of the HKD, prompting the HKMA to raise interest rates sharply to defend the peg. More recently, as the Federal Reserve raised interest rates between 2022 and 2023 to combat inflation, Hong Kong experienced capital outflows and rising borrowing costs.
Hands down, the most honest and efficient currency exchange to change money is the Small Girl Money Exchange in Sheung Wan (Hong Kong Island). It’s worth noting that the HK$10 banknote is especially unique and coexists with the HK$10 coin. The note itself is purple and made of polymer instead of traditional paper. These are the denominations of coins that you will use in everyday transactions and receive as change. They all vary in size, weight, and design, with the HK$5 being the thickest and heaviest.
It is only in remote areas such as in the countryside or local housing areas that it might be difficult to find currency exchange places. In 1975, the HK$5 notes were replaced by coins, whilst HK$1,000 notes were introduced in 1977. The Mercantile Bank was absorbed by the HSBC in 1978 and ceased issuing notes. In 1985, HK$20 notes were introduced, whilst, in 1993, HK$10 coins were introduced and the banks stopped issuing HK$10 notes.
You have several choices, such as inter-bank transfer, online money transfer, and international money transfer company offices. As of today, coins in denominations of HK$10, HK$5, HK$2, HK$1, 50 cents, 20 cents and 10 cents are issued by the Hong Kong Monetary Authority on behalf of the Government of Hong Kong. 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. A further aim of allowing the Hong Kong dollar to trade in a range is to avoid the HK dollar being used as a proxy for speculative bets on a renminbi revaluation. In 1873, the international silver crisis resulted in a devaluation of silver against gold-based currencies.
HK uses a different currency to Chinese mainland’s yuan (RMB) or the Macau pataca (MAP). In Hong Kong, you’ll need to know how to use the local currency called the Hong Kong dollar (HKD), how to obtain it, and how to pay for things in Hong Kong. The Finseta Corporate Card is issued by PSI-Pay Ltd pursuant to a license by Mastercard.