Another Chinese currency, or just Hong Kong dollars

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today, one of the main financial centers of the modern world economic system is a special administrative region of the People's Republic of China, which is known as Hong Kong. The fascinating history of the autonomous state, geographical location and a rather long English protectorate made Hong Kong a powerful power, which, although small in size, has significant authority in the world economic arena. Today, for 16 consecutive years, Hong Kong is officially part of China. But in fact, the impact on autonomy from the PRC is insignificant and is carried out in various indirect ways. This situation is explained by the special administrative position assigned to Hong Kong by a carefully considered agreement between Great Britain and China on the transfer of the English colony to the rule of the PRC. Thus, Great Britain showed an act of goodwill, thanks to which the ethnic Chinese territories were reunited, and the PRC received a huge world financial center. Today, the process of interaction between the economies of China and Hong Kong within onethe state system is a striking symbiosis of two different, even hostile, ideologies. The effectiveness of this kind of symbiosis is also amazing and gives more than a positive result for the economies of both countries.

Hong Kong dollars

The level of independence of this special administrative region of the People's Republic of China is so great that it even has its own currency. The autonomy has been issuing Hong Kong dollars since February 2, 1895. That is, since the time of colonization, the financial system of the Special Administrative Region has not switched to Chinese monetary units. But this, of course, does not constitute the slightest problem for people living both in the PRC and in the autonomy, since the yuan and Hong Kong dollars are reliable, highly liquid convertible means of exchange of values. And according to financiers, the more the capital is dispersed among the most reliable carriers, the safer it is to store it.

Hong Kong dollar exchange rate

The financial independence of the Special Administrative Region of the People's Republic of China from mainland China is supported not only by the presence of its own domestic currency system, but also by its presence in the international Forex market. Hong Kong dollars are usually denoted by the bank code HKD and the cipher of the international organization for standardization ISO 4217. In addition, the monetary unit of the autonomy is pegged to the US dollar in accordance with clearly establishedthe framework of currency fluctuations, like most participants in the international system of floating exchange rates, including the Chinese yuan. Which, in turn, makes this monetary unit a means of exchange of values, subject to free conversion, regardless of the policy of the PRC. To date, the Hong Kong dollar against the ruble is correlated by the central banks of the states as 1 HKD for 4.15 RUB.