Hong Kong Dollar

Overview

The Hong Kong Dollar is one of the most traded currencies in the world. The currency symbol is $ or HK$ to distinguish it from the other Dollar currencies. A Dollar consists of 100 cents.

Economy

• Hong Kong is considered one world's leading international financial centers.
• Hong Kong has a major capitalist service economy characterized by low taxation and free trade.
• Hong Kong is considered the world’s freest economy according to the Index of Economic Freedom.
• Despite the 2009 downturn in economic growth, the country has recovered well.
• Hong Kong’s economic strengths, including a sound banking system, virtually no public debt, a strong legal system, ample foreign exchange reserves, rigorous anti-corruption measures, and close ties with mainland China are the main reasons for recovery.

History

• In 1841, trading in Hong Kong did not use any local currencies. Foreign currencies such as Indian Rupees, Spanish and Mexican Reales, and Chinese coins were circulated.
• In 1863, the Royal Mint in London began issuing special subsidiary coinage for use in Hong Kong within the Dollar system.
• During the Japanese occupation, Japanese military Yen were the only means of everyday exchange in Hong Kong.
• In 1972, the Hong Kong Dollar was pegged to the US Dollar at a rate of 5.65 HK$ = 1 USD.
• As of May 18, 2005, in addition to the lower guaranteed limit, a new upper guaranteed limit was set for the Hong Kong Dollar at 7.75 to the American Dollar.
• Available coins are 10, 20, and 50 cent coins; 1, 2, 5, and 10 dollar coins, and banknotes of 10, 20, 50, 100, 500, and 1,000 dollars.