There will be no forex control: Hong Kong Monetary Authority

Source:Global Times Published: 2020/5/31 12:33:40

Hong Kong residents from all walks of life collect online signatures and hold a gathering on Sunday morning to show their support for the draft bill to safeguard the national security law to be implemented in the Hong Kong Special Administrative Region. The legal agenda was announced on Thursday night. Photo: cnsphoto


Free flow of capital and free convertibility of the Hong Kong dollar will continue to be safeguarded by Article 112 of the Basic Law, the Hong Kong Monetary Authority (HKMA) noted on its official Facebook page on Saturday in response to rumors that Hong Kong may impose foreign exchange control.

"The financial system of Hong Kong is robust and resilient. We are well positioned to withstand shocks," the HKMA said on its home page.

According to the HKMA, Hong Kong's foreign reserves have surpassed $440 billion, more than twice its monetary base. The banking system is also highly capitalized with an adequacy ratio of 20 percent. The liquidity coverage ratio reached 160 percent.

The HKMA reiterates that it sees no need and has no plan to change the well-established Linked Exchange Rate System. 

"The HKMA has the capability, resources and determination to safeguard Hong Kong's monetary and financial stability," it said.

Posted in: ECONOMY

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