Hong Kong’s monetary policy objective is to maintain a stable exchange value of the Hong Kong dollar. Hong Kong is a highly externally-oriented and open economy without imposing foreign exchange controls. Maintaining a stable exchange rate is therefore very important for Hong Kong.
The Financial Secretary is responsible for determining the monetary policy objectives and the structure of the monetary system in Hong Kong, which is to maintain a stable external exchange value of the currency of Hong Kong, in terms of its exchange rate in the foreign exchange market against the US dollar, at around HK$7.8 to US$1, through a Currency Board system. The Monetary Authority, who is the Chief Executive of the Hong Kong Monetary Authority, is responsible for achieving the monetary policy objectives, including determining the strategy, instruments and operational means for doing so. The Monetary Authority is also responsible for maintaining the stability and integrity of the monetary system of Hong Kong.
The work of the HKMA on maintaining monetary stability in Hong Kong during the past year can be found in the Monetary Stability chapter of the HKMA Annual Report.