HKMA buys USD as HKD touches strong-side peg
Source Xinhua, Dawn, Arab News, Anadolu and Minute Mirror
The Hong Kong Monetary Authority (HKMA) sold 46.539 billion Hong Kong dollars to the market in exchange for U.S. dollars on Saturday as the strong-side Convertibility Undertaking (CU) of 7.75 Hong Kong dollars to 1 U.S. dollar was triggered.
The Aggregate Balance, the sum of balances of banks’ clearing accounts kept with the HKMA, will rise to 91.309 billion Hong Kong dollars on May 7, according to the HKMA.
The HKMA said that the Hong Kong dollar has strengthened on the recent surge of investment-related demand. The gains of several Asian currencies against the greenback on Friday have also bolstered the Hong Kong dollar.
This was the first triggering of the strong-side CU since October 2020.
Reference Link:- https://english.news.cn/20250503/39dfd691732c42f49e7f9d70f8e86ff4/c.html
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
