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Hong Kong Monetary Authority intervenes to defend HK dollar peg

Published on Oct 31, 2012 6:40 PM

HONG KONG (REUTERS) - The Hong Kong Monetary Authority (HKMA) stepped into the currency market again on Wednesday by selling HK$2.7 billion (S$424 million) as the local currency repeatedly hit the top end of its trading range.

According to Reuters data, the latest intervention will lift the aggregate balance - the sum of balances on clearing accounts maintained by banks with the HKMA - to HK$168.43 billion on Friday.

It was the sixth intervention from the HKMA in two weeks.

Together with the US$2.2 billion (S$2.7 billion) worth of Hong Kong dollars the HKMA sold earlier this month, the total amount of Hong Kong dollars it injected into the market has reached US$2.55 billion.

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