Linked Exchange Rate System

Hong Kong’s Linked Exchange Rate System is a Currency Board system with the following features:

The Monetary Base comprises the following components:

The HKMA has been disclosing the forecast change in the Aggregate Balance attributable to the HKMA's foreign exchange transactions on its Reuters page on a real time basis since June 1998. This measure enables market participants to anticipate changes in liquidity conditions in the interbank market and facilitates a more efficient adjustment in the interbank interest rates. In addition, details of the entire Monetary Base and a breakdown of its components are published on the Reuters' HKMA page every day. Information on the Monetary Base and Interbank Liquidity are also released daily on the HKMA website.