Hong Kong’s Linked Exchange Rate System
Published By: HKMA on eSS | Published Date: May, 27 , 2011Hong Kong has had a linked exchange rate regime of one kind or another
for most of its history as a trading and financial centre.
In 1863 the Hong Kong Government declared the silver dollar – then a kind
of international currency – to be the legal tender for Hong Kong, and in
1866 began issuing a Hong Kong version of the silver dollar. The silver
standard became the basis of Hong Kong’s monetary system until 1935,
when, during a world silver crisis, the Government announced that the Hong
Kong dollar would be taken off the silver standard and linked to the pound
sterling at the rate of HK$16 to the pound. [HKMA Background Brief No.1] URL: [http://www.info.gov.hk/hkma/eng/public/hkmalin/full_e.pdf]
Author(s): Hong Kong Monetary Authority | Posted on: May 27, 2011 | Views(682) | Download (143)