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Financially, the currency peg was designed not to require the Bank of England to lend its reserves to maintain Hong Kong’s currency peg. You’ll always get the lowest available fee and there are no extra foreign transaction charges. Find the USD/HKD mid-market rate from a currency conversion site or a website like this, so you can keep an eye on the market and compare the rates you’re offered as you travel against the mid-market rate easily. Find the AUD/HKD mid-market rate from a currency conversion site or a website like this, so you can keep an eye on the market and compare the rates you’re offered as you travel against the mid-market rate easily. The Hong Kong Dollar is subdivided into cents and is issued in various banknote and coin denominations.
Is USD accepted in Hong Kong?
- Hong Kong also uses coins of 10, 20, and 50 cents and 1 HKD, 2 HKD, 5 HKD, and 10 HKD.
- The official currency of Hong Kong is the Hong Kong dollar (HKD), often shown as “$” or “HK$”.
- The best rates are usually found withdrawing the local currency from an ATM on arrival at your destination.
- The issuance of Hong Kong dollar notes is now controlled by HKMA, the Hong Kong Government Currency Commission.
- Usually, having a few different ways to pay and get cash is the best option for travellers and tourists.
The HKD is the ninth most traded currency, and because it is pegged to the U.S. dollar, with upper and lower limits, it does not exhibit any strong unique correlations with other currencies. This trading a simple forex scalping strategy using 200ema and stochastic indicator band versus the USD has been in place since 1983, although the upper and lower limits have been adjusted periodically. The HKMA has about $450 billion+ USD in foreign reserves to thwart any attempts to break the peg with the USD. One notable attempt was made by legendary hedge fund manager George Soros in 1998. The Hong Kong dollar is made up of 100 cents and is often shown with the HK$ prefix to differentiate it from other dollar-denominated currencies.
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If you’re paying for things in Hong Kong with a AUD bank card you might find a foreign transaction fee is added. You’ll be able to use a travel debit card from a provider like Wise to make convenient payments and cash withdrawals and to convert funds online. HKD is governed by the currency board of Hong Kong called the Hong Kong Monetary Authority (HKMA), which is also the country’s de facto central bank. Under the HKMA license, three commercial banks are authorized to print their notes for circulation. The banks are Standard Chartered, the Bank of China, and the HSBC (Hong Kong and Shanghai Banking Corporation). There are currently 1, 2, 5, 10, 20, fxtm review 2021 is fxtm a scam or legit forex broker 50, and 100 dollar denominations in circulation.
The style and color of banknotes are different based on the denomination. Currently, denominations of 10 HKD, 20 HKD, 50 HKD, 100 HKD, 500 HKD, and 1,000 HKD notes are in circulation. Hong Kong also uses coins of 10, 20, and 50 cents and 1 HKD, 2 HKD, 5 HKD, and 10 HKD. The official currency of Hong Kong is the Hong Kong dollar (HKD), often shown as “$” or “HK$”. The dollar is divided into 100 cents, and each 10 cents is called a “houh”.
- This pushes up your costs when you spend in a foreign currency, and can be tricky to calculate.
- We compare currency exchange and money transfer services in over 200 countries worldwide.
- Currency exchange providers are often in airports and hotels, although the exchange shops in a city centre are likely to be cheaper overall.
- Whether you’re heading there for work or pleasure, you’ll need to know how to pay your way as you travel.
- The fixed exchange rate system seeks to maintain parity with the USD within a tight range, allowing HKD note-issuing banks to issue new banknotes only when they deposit an equivalent value of U.S. dollars with the authority.
- Get familiar with the exchange rates offered locally to you, and online, so you can decide whether it’s worth switching some funds in advance of travel, using a card to pay while you’re away, or converting cash on arrival.
What Is the Hong Kong Dollar (HKD)?
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As of today, coins in denominations of HK$10, HK$5, HK$2, HK$1, 50 cents, 20 cents and 10 cents are issued by the Hong Kong Monetary Authority on behalf of the Government of Hong Kong. In 1873, the international silver crisis resulted in a devaluation of silver against gold-based currencies. It’s a good idea to exchange US Dollars to Hong Kong Dollar before you head off to Hong Kong, as you can often find a better exchange rate and lower overall costs before you travel. It’s a good idea to exchange Australian Dollars to Hong Kong Dollar australia braces for coal export ban as relations with china plummet before you head off to Hong Kong, as you can often find a better exchange rate and lower overall costs before you travel.
Hong Kong Dollar Exchange Rate
Three commercial banks are licensed by the Hong Kong Monetary Authority to issue their own banknotes for general circulation in Hong Kong. However, the HK$10 banknote and all coins are issued by the Government of Hong Kong. Carrying some money in cash and using a travel debit card from a service like Wise is usually the best way to spend while you’re away from home. The currency operates under a linked exchange rate system, with its value pegged to the US Dollar within a narrow range.
Hong Kong Dollar to United States Dollar
Instead you may find that the AUD/HKD rate you get when exchanging travel cash includes a markup – an extra fee. It was first introduced in 1863 and has become one of the most traded currencies worldwide. The value of HKD is pegged to the US dollar both with upper and lower limits. Hong Kong Dollar is represented by banknotes and coins, which are issued in denominations of HK$10, HK$20, HK$50, HK$100, HK$500, HK$1,000 banknotes, as well as 10c, 20c, 50c, HK$1, HK$2, HK$5, and HK$10 coins. HKD can be represented by the same symbol as the US Dollar ($) or as HK$ to distinguish the difference between other dollar currencies. One of the key roles of the HKMA is maintaining currency stability.
Related articles about the Hong Kong Dollar
The linked exchange rate system is designed to stabilize the exchange rate between the Hong Kong dollar (HKD) and the United States dollar (USD). The fixed exchange rate system seeks to maintain parity with the USD within a tight range, allowing HKD note-issuing banks to issue new banknotes only when they deposit an equivalent value of U.S. dollars with the authority. Sometimes when you’re away on a trip abroad you’ll find that merchants will take payments in a selection of major foreign currencies. However, the chances are that where this is offered, you won’t get a good exchange rate for your USD. Planning smart and convenient ways to spend in HKD when you’re away is likely to mean you save on costs in the end. You’re unlikely to be able to officially transact in USD in Hong Kong, which is why it’s time to start getting used to HKD and learning more about the currency exchange rates so you’ll know what you’re spending on your trip.
HKD refers to the Hong Kong Dollar, the official currency of Hong Kong. It is widely traded in the forex market and is one of the most actively traded currencies in the world. This guide covers all you’ll need to know about the official currency in Hong Kong, where to get it and how to keep your costs down during your trip.
