Why HKD-USD conversion rate has been so stable for years?
Is HKD to USD fixed?
The Hong Kong Monetary Authority is the monetary authority of Hong Kong and the Hong Kong dollar.
| Hong Kong dollar | |
|---|---|
| Valuation | |
| Inflation | 1.7%, Mar. 2022 est. |
| Pegged with | U.S. Dollar (USD) US$1.00 USD = HK$7.80±0.05 |
| Pegged by | Macau Pataca (MOP$) HK$1.00 = MOP$1.03 |
How do you keep a currency stable?
To increase the value of their currency, countries could try several policies.
- Sell foreign exchange assets, purchase own currency.
- Raise interest rates (attract hot money flows.
- Reduce inflation (make exports more competitive.
- Supply-side policies to increase long-term competitiveness.