MCQ Detailed View

The official currency of Hong Kong is the Hong Kong Dollar (HKD). It is one of the most stable and widely traded currencies in Asia and is distinct from the Chinese Yuan, despite Hong Kong being a Special Administrative Region (SAR) of China.

Key facts about the Hong Kong Dollar:

• Currency code: HKD


• Symbol: HK$


• Subdivision: 1 Hong Kong Dollar = 100 cents


• Pegged rate: It is pegged to the US Dollar in a narrow range of HK$7.75–7.85 per USD

The Hong Kong Dollar is issued under a unique system. Unlike most countries where a central bank issues currency, Hong Kong allows three commercial banks — HSBC, Standard Chartered Bank, and Bank of China (Hong Kong) — to issue banknotes. These notes are then regulated and backed by the Hong Kong Monetary Authority (HKMA).

This currency system has been in place since 1935 when Hong Kong officially shifted to a dollar-based system. The peg to the US Dollar was introduced in 1983 to stabilize the economy during a period of political uncertainty regarding Hong Kong’s future after British rule.

Historical and economic highlights:

• First issued: 1863 by the Hongkong and Shanghai Banking Corporation


• Current regulator: Hong Kong Monetary Authority (established in 1993)


• Economy type: Free-market, open trade policies, and financial hub of Asia

Despite being part of China, Hong Kong follows the “one country, two systems” principle, allowing it to maintain its own financial and monetary systems. This includes the use of the Hong Kong Dollar instead of the Chinese Yuan. It plays a major role in international finance and trade, and its stability attracts investors worldwide.