What is Hong Kong Dollar (HKD)?

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The Hong Kong Dollar (HKD) is the official currency of the Hong Kong Special Administrative Region of the People's Republic of China, operating under a unique **Linked Exchange Rate System (LERS)**, a form of currency board arrangement that pegs the HKD to the US Dollar (USD) within a narrow band of HK$7.75 to HK$7.85 per US$1.

Hong Kong Dollar (HKD)

What is Hong Kong Dollar (HKD)?

What is the Linked Exchange Rate System (LERS) and how does it maintain the HKD's peg to the USD?

How does the HKD's LERS impact Hong Kong's domestic interest rate policy?

What is the HKD's role in the global foreign exchange market, especially in relation to the Chinese Yuan (CNH)?

What mechanisms does the HKMA use to defend the HKD's peg and ensure the stability of the LERS?

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