Hong Kong dollar weakens, see a new low in a month

Hong Kong dollar weakens, see a new low in a month

Sino-US trade war escalated, Hong Kong exchanges fell yesterday, the most fell 0.025%, the latest reported 7.8481, the weakest in a month. The Hong Kong dollar interest rate also fell generally yesterday, with an increase of only six months. The overnight interest rate fell another 13 basis points yesterday, falling below the 1% level and reporting 0.88357%, which continued to hit a new low since March 20. The one-month interest rate as a benchmark for the first time has fallen for 5 days to 1.86679%, widening the gap with the US dollar to 60 basis points; the three-month interest rate has ended nine consecutive months, falling back to 2.09714%, with the US dollar The difference is slightly widened to 46 basis points.

The Chief Executive of the HKMA, Mr Chan Tak-lin, said that this year, the Hong Kong Exchange has touched the weak exchange guarantee eight times, and the Bureau has jointly undertaken a total of HK$22.1 billion. At present, the balance of the banking system has dropped to 54.2 billion yuan, but he said that the market does not have to worry about the rapid flow of funds, because the banking system is only part of the monetary base, and there are more than 1 trillion yuan of Exchange Fund Bills, which can serve as a powerful buffer. . Most of these notes are held by banks, and the HKMA can adjust the size of the issuance of the notes at any time, so that these notes can be converted into a banking system.

Taking into account the outflow of 103.5 billion yuan last year, the Hong Kong Exchange has repeatedly touched the weak exchange guarantee in the past two years, resulting in a total net outflow of 125.6 billion yuan. Chen Delin pointed out that the outflow of funds only accounted for a small part of the inflow since 2008. Designed according to the linked exchange rate mechanism, once the funds flow out, the Hong Kong dollar interest rate will rise and then support the exchange rate.