Asian Currency Rates Surge! Hong Kong Intervenes by Selling HKD to Buy USD
The Hong Kong Monetary Authority has confirmed its intervention in the foreign exchange market by selling a significant amount of Hong Kong dollars to buy US dollars. On March 3, it sold HKD 46.539 billion (approximately TWD 180 billion) and confirmed on the 5th that it sold another HKD 9.532 billion (approximately TWD 358 billion) to purchase USD.
According to local media reports, this marks the first time in four years that the HKMA has intervened by buying USD, with the last such action occurring in October 2020. Previously, they primarily sold USD to maintain the exchange rate close to the lower limit of the trading band of 7.85 HKD per USD.
The HKMA aims to keep the HKD exchange rate within the range of 7.75 to 7.85 and has enacted strong exchange guarantees to manage the situation.
