HKMA intervenes again to prop up dollar peg

Hong Kong’s de-facto central bank bought $3.164 billion from the market in New York trading hours to stop the local currency weakening and breaking its peg to the US dollar.

The Hong Kong dollar is pegged to a tight band of between 7.75 and 7.85 versus the US dollar.

The HKMA intervened twice on Thursday and once on Friday.

The aggregate balance, the key gauge of cash in the banking system, will decrease to $325.894 billion on Tuesday, a HKMA spokeswoman said on Saturday.

It dropped to around $50 billion in 2019 after the last series of HKMA interventions to stop the currency weakening. (Reuters)