HKMA bought another HK$5.5 bn to defend currency peg

 

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The Hong Kong Monetary Authority (HKMA), the city’s de factor central bank, bought HK$5.5 billion from the market on Monday to stop the local currency from further weakening and breaking its peg to the US dollar.

Following the intervention, the aggregate balance will fall below HK$200 billion on July 20, said the HKMA.

As the US Federal Reserve keeps raising interest rates, the Hong Kong dollar has been hit the weak-side convertibility guarantee level of 7.85, making the HKMA passively buy Hong Kong dollars from the market.

The HKMA had bought the local currency several times last week with purchases of HK$ 12.8 billion, HK$5.3 billion, HK$ 4.1 billion and HK$ 15.9 billion during Hong Kong and New York hours.