History of Hong Kong's Exchange Rate System

17 Oct 1983:

Hong Kong started implementing a Currency Board System, under which the Hong Kong dollar is pegged to the US dollar at a fixed exchange rate of US$1 to HK$7.8.

A series of monetary reforms have been implemented by the HKMA since 1987.  The main thrust of these measures is to strengthen the Currency Board arrangements and to enable the efficient operation of the interest rate adjustment mechanism in maintaining exchange rate stability.

Nov 1974:

A breakdown of confidence in the US dollar led to the collapse of the Bretton Woods system. The Hong Kong dollar became a floating currency.

Jul 1972:

The Hong Kong dollar was pegged to the US dollar at US$1 to HK$5.65, with ±2.25% intervention band around the central rate.

Feb 1973:

The official rate of the Hong Kong dollar was changed to US$1 to HK$5.085.

Dec 1935:

Due to a world silver crisis, the Hong Kong Government declared the Hong Kong dollar as the local monetary unit, with an exchange value fixed at 1 pound to HK$16.

Nov1967:

The Hong Kong dollar was revalued against the sterling at a new rate of 1 pound to HK$14.55 following the rapid depreciation of the sterling.

1863:

Hong Kong Government declared silver dollars to be the legal tender, and established its first monetary system, the Silver Standard, under which the value of currency was defined in terms of silver and the currency might be exchanged for silver.