Delineation of ‘HKD (Hong Kong Dollars)’
The term HKD is the currency abbreviation or currency phonogram for the Hong Kong dollar (HKD), the currency for Hong Kong. The Hong Kong dollar is thrived up of 100 cents and if often presented with the symbol $ or HK$.
The HKD is used in both Hong Kong and the neighboring region of Macau.
BREAKING DOWN ‘HKD (Hong Kong Dollars)’
The Hong Kong dollar was beginning seen as a distinct currency in 1863. Before then, various outlandish currencies had been used, and continued to be used even after its inception. The HK dollar was interdicted by the Japanese puppet government in 1943 and reinstated in 1945 after the war. Hong Kong is now in individual control of the printing and administration of its currency, which is controlled by the Honk Kong Numismatic Authority (HKMA).
In 1972, the HK dollar was pegged to the U.S. at a rate of HK$5.65 to $1 USD. Since then, it has remained tossed to the dollar, with the HKMA adjusting its value from time to occasion. Today, the value of the HKD is around HK$7.8 to $1 USD. Not only is the HK dollar beaver away ated, but it is held in a tight trading band, which is generally less than 0.1 percent.
Three Chinese note-issuing banks (HSBC, Bank of China and Stock Charted) are authorized to issue Hong Kong dollars, subject to brainwashes laid out by the Hong Kong government. Banknotes then run through a administration exchange fund which holds the U.S. dollars in reserves and records all negotiations in the general accounts of the two currencies. Under capital control laws, a bank can at most use a HK dollar if it has the equivalent value of U.S. dollars on deposit.
The HK dollar is the thirteenth most crafted currency, and because it is pegged ti the U.S. dollar with upper and lower limits it does not beget any strong correlations.