Economics
Hong Kong Peg Defense Hits $692 Million as Weakness Persists
- HKMA buys $500 million worth of local dollars overnight
- Move follows another intervention toward the end of last week
Photographer: Justin Chin/Bloomberg
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Hong Kong’s de facto central bank intervened to defend the local currency’s peg against the dollar for the second time in days.
The Hong Kong Monetary Authority bought HK$3.925 billion ($500 million) of local currency, according to its page on Bloomberg, after the Hong Kong dollar fell to the weak end of its HK$7.75-HK$7.85 trading band. It also purchased $192 million worth at the end of last week, it said Saturday. The move will reduce the aggregate balance, a measure of interbank liquidity, to HK$70.9 billion on March 14.