Compare our rate and fee with Western Union, ICICI Bank, WorldRemit and more, and see the difference for yourself. The Hong Kong dollar is made up of 100 cents and is often shown with the HK$ prefix to differentiate it from other how to trade a breakout dollar-denominated currencies. Hong Kong is a leading global financial center and its economy is considered to be the freest in the world. Create a chart for any currency pair in the world to see their currency history.

The Hong Kong dollar is backed by a war chest of around HK$4 trillion (US$571 billion) held in the HKMA’s Exchange Fund, one of the world’s largest foreign exchange reserves, that can be used to defend the currency. Tsim Sha Tsui and Nathan Road are where you can get the best rates since the competition is high. forex pin bar However, prices vary, and you can find better value for currency exchange not along the main tourist thoroughfares but just behind them in the side streets where the locals and Chinese go. If you want to find these places, do a little looking around. RMB may be readily changed in Hong Kong into other currencies.

  • The linked exchange rate system is designed to stabilize the exchange rate between the Hong Kong dollar (HKD) and the United States dollar (USD).
  • The issue of Hong Kong dollar notes is governed today by the Hong Kong Monetary Authority (HKMA), the governmental currency board of Hong Kong.
  • During Japanese occupation the Dollar was temporarily suspended, replaced by the Japanese Military Yen.
  • Electronic mobile payments apps are not yet as commonly used as in China where the majority of the population uses them every day now.

Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money. There is a reasonable chance that in the long term, the HKD will no longer be relevant, and could even become extinct. Eventually, there may come a point when the currency control over the Chinese Yuan is lifted or loosened significantly, and at such a time, the HKD will have no future key role to play.

Hong Kong Currency: a Travelers’ Guide to Money in HK

These notes were printed in paper in 2002 and in polymer since 2007. All older HK$10 banknotes, although rare and being phased out, remain legal tender. As of today, the three commercial banks, HSBC, Bank of China and Standard Chartered issue their own designs of banknotes in denominations of HK$20, HK$50, HK$100, HK$500 and HK$1,000, with all designs being similar to the other in the same denomination of banknote. While only the HK$10 banknote is issued solely by Hong Kong Monetary Authority on behalf of the Government of Hong Kong, which in total makes up the banknote circulation arrangement to four different note issuers. In 1934, the last 1-cent coins were issued, but the last minting was 1941.

The peg’s fixed exchange rate allows the free movement of capital that suits a small and open economy like Hong Kong, the HKMA said. In 1845, the first private bank, the Oriental Bank, was founded. However, banknotes were not produced until the 1860s, when the Oriental Bank, the Chartered Bank of India, Australia and China and the Hong Kong and Shanghai Banking Corporation began issuing notes.

Hong Kong dollar notes in everyday circulation are $10, $20, $50, $100, $500 and $1,000. There are coins for these amounts as well as a handy $10 HKD coin. In 1960, cupro-nickel 1-dollar coins were introduced, these were then reduced in size in 1978. They were followed in 1975 by nickel-brass 20 cents and cupro-nickel 2-dollar coin (both scallop shaped), and in 1976 by decagonal, cupro-nickel 5-dollar coin, changed to a round thicker shape in 1980.

Low limits are set on how much RMB you can change to a foreign currency in a single day in China itself. Not only do they allow for quick electronic payment for transportation such as the MTR metro to avoid getting tickets, you can use them to pay for everything from convenience store purchases to restaurant bills at many restaurants. Again, it is a method to avoid handling cash or getting scammed with counterfeit money. ATMs can be found on almost city street, at bank offices, by supermarkets, next to many convenience stores, and in metro stations. They take international cards and have instructions in English and Chinese. Generally, people can withdraw in amounts of 300 USD or 400 USD (4,000 HKD).

These were not issued because the Japanese sank a ship carrying 1-cent coins bound for Hong Kong in the Second World War. The following year (1935), cupro-nickel 5 and 10 cents were introduced, replaced by nickel in 1937 and nickel-brass between 1948 and 1949. Copper-nickel 50 cents were issued in 1951 and first bore the name “fifty cents” in both Chinese and English, but these were changed to nickel-brass in 1977. It fairly easy for travelers to exchange foreign cash for local Hong Kong dollars since numerous currency exchange places and ATMs are everywhere tourists usually go. It is only in remote areas such as in the countryside or local housing areas that it might be difficult to find currency exchange places. Established in 1993, the Hong Kong Monetary Authority is the central bank of the island and acts to control inflation and maintain the stability of the Hong Kong dollar (HKD) and of the banking sector through its monetary policy.

In 1994 the HKMA gave authority to the Bank of China to issue notes. In 1863, 1-mil (1⁄10-cent), 1-cent and 10-cent coins were introduced, followed in 1866 by 5-cent and 20-cents, half-dollar and 1-dollar. The 1-mil and 1-cent were struck in bronze, with the 1 mil a holed coin.

As the Hong Kong Dollar is somewhat different to other currencies, its economic drivers are also different. While economic data such as GDP, current accounts, trade balances and inflation do have some importance, they are significant only up to a point, as the Hong Kong Dollar can only trade within a narrow band. Also, as the Chinese and Hong Kong economies are so closely linked, any type of Black Wednesday-type raid on the HKD would inevitably fail. The HKD is not a particularly tradable currency, as although major banks with powerful computers may be able to make some profit from the fractional moves within the currency’s prices, the narrowness of the range deters the majority of small speculators from investing.

Historical Exchange Rates For United States Dollar to Hong Kong Dollar

In 1945, the Hong Kong was re-issued, pegged to the British Pound at a rate of 16 HKD to 1 GBP. In 1972, the Hong Kong Dollar re-pegged to the US Dollar, with the rate changing multiple times over the next few decades. Currently, the HKD operates on a linked exchange rate regime. One of the key roles of the HKMA is maintaining currency stability. The linked exchange rate system is designed to stabilize the exchange rate between the Hong Kong dollar (HKD) and the United States dollar (USD). The fixed exchange rate system seeks to maintain parity with the USD within a tight range, allowing HKD note-issuing banks to issue new banknotes only when they deposit an equivalent value of U.S. dollars with the authority.

How to Exchange Money in Hong Kong

These currency charts use live mid-market rates, are easy to use, and are very reliable. These are the lowest points the exchange rate has been at in the last 30 and 90-day periods. These are the highest points the exchange rate has been at in the last 30 and 90-day how to invest in the ruble periods. The peg’s introduction was an effort by the Hong Kong government to re-establish confidence among individuals, investors and corporations, while sending an implicit message that the city’s financial system was maintaining some distance from mainland China.


The various banks and banking networks offer different rates depending on their agreements with foreign banks. The U.S. dollar is the currency most used in international transactions. Several countries use the U.S. dollar as their official currency, and many others allow it to be used in a de facto capacity.

Since then, it has remained pegged to the dollar, with the HKMA adjusting its value from time to time. The Hong Kong dollar has been pegged to a narrow trading band, which currently ranges between HK$7.7500 and HK$7.8500 per USD. If, and when, the HKD hits either the upper or lower bound, the HKMA, which acts as the de facto central bank, intervenes to stabilize the currency.

This currency, however, proved to be unpopular and foreign coins continued to circulate. Our currency rankings show that the most popular Hong Kong Dollar exchange rate is the HKD to USD rate. The currency code for Dollars is HKD, and the currency symbol is $. Below, you’ll find Hong Kong Dollar rates and a currency converter.

Also, national oriented companies such as the Philippines’ Cebuana Lhuillier for pera padala have agents in Hong Kong. The World Wide Plaza building is a location in Central near the IFC Mall is a useful place to go for money transfer offices of several companies since it is in a favorite tourist area. In Hong Kong, you’ll need to know how to use the local currency called the Hong Kong dollar (HKD), how to obtain it, and how to pay for things in Hong Kong. We give you the real rate, independently provided by Reuters.