The Hong Kong SAR Government is Fully Committed to the Linked Exchange Rate System

The Hong Kong Monetary Authority (HKMA) spokesman today denied a report in the Hong Kong Daily News that the Hong Kong SAR Government is considering a devaluation of the linked exchange rate from HK$7.8 to HK$10 to US$1.

The HKMA spokesman said that the report is totally groundless and unwarranted. He reiterated that the Hong Kong SAR Government is fully committed to the linked exchange rate system under which the Hong Kong dollar is linked to the US dollar at the rate of US$1 to HK$7.80. The link is the cornerstone of Hong Kong's monetary and financial stability and has proved to be highly resilient to external shocks.

Hong Kong Monetary Authority

15 June 1998