Hong Kong Monetary Authority

Currency Office Hong Kong
香港金融管理局
Hong Kong Monetary Authority
	HKMA (2009) ; Two IFC Entrance (night view)
Headquarters	Two IFC, ; 8 Finance Street, ; Central, Hong Kong , China;
founding	1993
president	Eddie WM YUE ; ( Chief Executive ) ; 余偉文 / 余伟文; ( 執行總裁 / 执行总裁 )
country	Hong Kong , China
currency	Hong Kong dollars
ISO 4217	HKD ISO 4217
Currency reserves	432.800 million USD ; (as of August 2019)
Website	www.hkma.gov.hk
predecessor	Office of the Exchange Fund ; Office of the Commissioner of Banking
	List of central banks

The Hong Kong Monetary Authority , or HKMA for short ( Chinese 香港金融管理局 , Pinyin Xiānggǎng Jīnróng Guǎnlǐjú , Jyutping Hoeng ¹ gong ² Gam ¹ jung ⁴ Gun ² lei ⁵ guk ⁶ , short 金管局 , Jīnguǎnjú , Jyutping Gam ¹ gun ² guk ⁶ ) , is Hong Kong's Monetary Office and de facto Hong Kong's central bank . It was founded on April 1, 1993. The main goals of the HKMA are maintaining currency stability and Hong Kong's status as an international financial center, promoting the stability of the financial system and managing the Exchange Fund , a fund with currency reserves . As a monetary policy institution, Hong Kong's Monetary Office, the HKMA, does not issue banknotes . She has entrusted these tasks, the banknote privilege , to three local banks, the Hong Kong and Shanghai Banking Corporation (HSBC), the Standard Chartered Bank and the Bank of China . However, the HKMA makes an exception for the ten Hong Kong dollar coins and the now rare ten Hong Kong dollar bills. The HKMA alone issues the ten Hong Kong dollar coins and reserves the right to reissue ten Hong Kong dollar bills alongside the three commercial banks for special occasions. The agency is located in the Two International Finance Center (Two IFC), a high-rise building in Hong Kong's Central Finance and Business Center , where the HKMA's visitor center is located in the same building, with an exhibition and information for those interested.

Emergence

On April 1, 1993, the Hong Kong Monetary Authority (HKMA) was established. The two previously separate supervisory bodies, the “ Office of the Exchange Fund ” ( 外匯基金管理局 / 外汇基金管理局 , Wàihuì Jījīn Guǎnlǐjú - “Office of the Hong Kong Foreign Exchange Fund ”) and the “ Office of the Commissioner of Banking ” ( 銀行業監理處 / 银行业监理处 , Yínhángyè Jiānlǐchù - "Office of the Commissioner for Banks") were combined into one institution. This was done with the aim of creating a single institution in Hong Kong to better carry out the functions of a central bank.

tasks and goals

HKMA - Reception (2017)

The monetary policy objectives pursued by the HKMA are set by the head of the Hong Kong Treasury, the Financial Secretary ( 財政司司長 / 财政司司长 , 財長 / 财长 for short ), to whom the HKMA reports directly. Nevertheless, it is the management of the HKMA , the CEO ( Chief Executive ), free the methods and strategies these stated objectives are met.

Currency stability

The HKMA is supposed to maintain currency stability. To achieve this, the exchange rate of the Hong Kong dollar to the US dollar should be constant at 1 US $ to 7.8 HK $ .

If there is a decrease in demand for HK $, the HKMA will buy HK $. But if there is an increase in demand for HK $, these will be sold again.

Linked Exchange System

The Linked Exchange Rate System , an exchange rate arrangement , has been in place since 1983 . This requires that the entire amount of HK $ must be fully covered by US dollars at all times. If one of the three authorized banks prints money, the equivalent in US dollars must be paid into the Exchange Fund.

Bank stability

The HKMA has the task of regulating and monitoring the banking system in Hong Kong. The HKMA is also authorized to approve banks in Hong Kong. In Hong Kong there is a three-tier system in addition to the banking license. This means that there are three different types of banks, each with different rights. In the case of important approvals, the HKMA is obliged to consult the Financial Secretary for advice. Foreign banks can operate in Hong Kong without restrictions.

Maintaining Hong Kong's status as an international financial center

HKMA - Two IFC (2006)

In order to maintain Hong Kong's status as an international financial center, the HKMA cites the goals of maintaining and developing Hong Kong's financial infrastructure, promoting trust in Hong Kong's financial system and promoting market development initiatives. So far, the establishment of the HKMA has helped to increase understanding of the international economy and financial trends. In addition, HKMA has entered into various repurchase agreements with mainly Asian central banks in recent years.

Participation in the following international groups

Asian Development Bank (ADB)
Asia-Pacific Economic Cooperation (APEC)
Bank of International Settlements (BIS)
Basel Committee on Banking Supervision (BCBS)
Executives' Meeting of East Asia and Pacific Central Bank (EMEAP)
Financial Stability Board (FSB)
SEANZA

Exchange Fund

history

HKMA - Visitor center
information and exhibition area (2013)

The Hong Kong Exchange Fund was set up by the Currency Ordinance in 1935 . First of all, all cash cover for the paper money issued should be managed in the Exchange Fund . In 1976 the state transfers not only the budget reserves into the fund, but also the state's assets in foreign currencies, in order to reduce the risk and to centralize the management of the state's assets. In addition, all cash cover for the coins issued was paid in. However, the paid-in budget reserves may not be used permanently and must be repaid if this is required. On November 1, 1998, the entire financial assets of the Land Fund, founded in 1986, were paid into the Exchange Fund . This amounted to HK $ 211.4 billion.

Administration of the Exchange Fund

The Financial Secretary commissioned HKMA with the benefits and investment management of the Exchange Fund . The main objective is to influence the HK $ exchange rate.

Managing Director - Chief Executive

Surname	vintage	Long characters	Abbreviation	Pinyin	Jyutping	image	Start of office	End of office
Joseph CK Yam	* 1948	任志剛	任志刚	Rén Zhìgāng	Jam ⁶ room ³ gong ¹		Apr 1, 1993	Sept. 30, 2009
Norman TL Chan	* 1954	陳德霖	陈德霖	Chén Délín	Can ⁴ Dak ¹ lam ⁴	-	Oct. 1, 2009	Sept. 30, 2019
Eddie WM Yue	* 1965	余偉文	余伟文	Yú Wěiwén	Jyu ⁴ Wai ⁵ man ⁴	-	Oct. 1, 2019	-

Source: Hong Kong Monetary Authority

Web links

Official website (Chinese, English)

Individual evidence

^ ^A ^b The Chief Executive's Committee . In: www.hkma.gov.hk. Retrieved October 9, 2019 (Chinese, English).
↑ Hong Kong's Trade Data - Foreign Exchange Reserves - Currency Reserves . In: tradingeconomics.com. Retrieved October 9, 2019 .
↑ HKMA Press Release - Hong Kong's Latest Foreign Currency Reserve Assets Figures Released - Publication of the latest figures on foreign currency reserve assets . In: www.hkma.gov.hk. Retrieved October 9, 2019 (Chinese, English).
↑ About the HKMA (archived copy) ( Memento of November 27, 2014 in the Internet Archive ). In: www.hkma.gov.hk, accessed October 9, 2019. (English)
^ Hong Kong - The Facts - Financial Services. ( PDF ; 114 kB) In: www.gov.hk. Retrieved October 16, 2019 .
↑ ^a ^b Milestones of Monetary Reform - "Milestones of the currency reform". In: www.hkma.gov.hk. Retrieved October 16, 2019 .
↑ Linked Exchange Rate System (LERS) - "Linked Exchange Rate System". In: www.hkma.gov.hk. Retrieved October 16, 2019 .
↑ ^a ^b How Does the LERS Work? - How does "LERS" work? In: www.hkma.gov.hk. Retrieved October 16, 2019 .
↑ Banking Regulatory and Supervisory Regime - "Regulation and supervision order of the banks". In: www.hkma.gov.hk. Retrieved October 16, 2019 .
↑ ^a ^b The Three-tier Banking System - "The three-tier banking system". In: www.hkma.gov.hk. Retrieved October 16, 2019 .
↑ Authorization Regime - "Authorization rules". In: www.hkma.gov.hk. Retrieved October 16, 2019 .
↑ Hong Kong as an International Financial Center - "Hong Kong as an international financial center". In: www.hkma.gov.hk. Retrieved October 16, 2019 .
↑ Competitive International Financial Platform - "Competitive platform in the international financial sector". In: www.hkma.gov.hk. Retrieved October 16, 2019 .
↑ ^a ^b International & Regional Financial Co-operation - "Cooperation in the international and regional financial sector". In: www.hkma.gov.hk. Retrieved October 16, 2019 .
^ Exchange Fund - History - "History of the Hong Kong Exchange Fund". In: www.hkma.gov.hk. Retrieved October 16, 2019 .
↑ Reserves Management - "Reserve administration and management". In: www.hkma.gov.hk. Retrieved October 16, 2019 .
^ Exchange Fund's Statutory Purposes and Investment Objectives - “Legal mandate and investment objectives of the Hong Kong Exchange Fund”. In: www.hkma.gov.hk. Retrieved October 16, 2019 .
↑ Asia Times Staff: Eddie Yue to head HK Monetary Authority - "Eddie Yue heads the Hong Kong Monetary Office". In: Asia Times Online . July 25, 2019, accessed October 16, 2019 .
↑ Alfred LIU, Kari SOO LINDBERG, Dominic LAU: Hong Kong Names Eddie Yue as Next Monetary Authority Chief - "Hong Kong appoints Eddie Yue as the next head of the monetary office". In: Bloomberg News . July 25, 2019, accessed October 16, 2019 .
↑ HKMA press release - Remarks by CE / MA at Media Standup - "First public speech in the role of HKMA managing director". In: www.hkma.gov.hk. Retrieved October 9, 2019 (Chinese, English).
↑ HKMA press release - Keynote Speech at the HKAB & HKIB Distinguished Speaker Luncheon - "Last public speech in the role of HKMA Managing Director". In: www.hkma.gov.hk. July 25, 2019, accessed September 26, 2019 (Chinese, English).

[HKMA_Prasident_01-1] A ^b The Chief Executive's Committee . In: www.hkma.gov.hk. Retrieved October 9, 2019 (Chinese, English).

[Reserves_01-2] Hong Kong's Trade Data - Foreign Exchange Reserves - Currency Reserves . In: tradingeconomics.com. Retrieved October 9, 2019 .

[Reserves_02-3] HKMA Press Release - Hong Kong's Latest Foreign Currency Reserve Assets Figures Released - Publication of the latest figures on foreign currency reserve assets . In: www.hkma.gov.hk. Retrieved October 9, 2019 (Chinese, English).

[4] About the HKMA (archived copy) ( Memento of November 27, 2014 in the Internet Archive ). In: www.hkma.gov.hk, accessed October 9, 2019. (English)

[5] Hong Kong - The Facts - Financial Services. ( PDF ; 114 kB) In: www.gov.hk. Retrieved October 16, 2019 .

[Monetary_Milesstones_01-6] Milestones of Monetary Reform - "Milestones of the currency reform". In: www.hkma.gov.hk. Retrieved October 16, 2019 .

[LERS_01-7] Linked Exchange Rate System (LERS) - "Linked Exchange Rate System". In: www.hkma.gov.hk. Retrieved October 16, 2019 .

[LERS_02-8] How Does the LERS Work? - How does "LERS" work? In: www.hkma.gov.hk. Retrieved October 16, 2019 .

[banking_regulatory_01-9] Banking Regulatory and Supervisory Regime - "Regulation and supervision order of the banks". In: www.hkma.gov.hk. Retrieved October 16, 2019 .

[three-tier_banking_01-10] The Three-tier Banking System - "The three-tier banking system". In: www.hkma.gov.hk. Retrieved October 16, 2019 .

[authorization_01-11] Authorization Regime - "Authorization rules". In: www.hkma.gov.hk. Retrieved October 16, 2019 .

[Finanzzentrum_01-12] Hong Kong as an International Financial Center - "Hong Kong as an international financial center". In: www.hkma.gov.hk. Retrieved October 16, 2019 .

[Finanzzentrum_02-13] Competitive International Financial Platform - "Competitive platform in the international financial sector". In: www.hkma.gov.hk. Retrieved October 16, 2019 .

[Finanzzentrum_03-14] International & Regional Financial Co-operation - "Cooperation in the international and regional financial sector". In: www.hkma.gov.hk. Retrieved October 16, 2019 .

[exchange_fund_01-15] Exchange Fund - History - "History of the Hong Kong Exchange Fund". In: www.hkma.gov.hk. Retrieved October 16, 2019 .

[exchange_fund_02-16] Reserves Management - "Reserve administration and management". In: www.hkma.gov.hk. Retrieved October 16, 2019 .

[exchange_fund_03-17] Exchange Fund's Statutory Purposes and Investment Objectives - “Legal mandate and investment objectives of the Hong Kong Exchange Fund”. In: www.hkma.gov.hk. Retrieved October 16, 2019 .

[HKMA_Prasident_02-18] Asia Times Staff: Eddie Yue to head HK Monetary Authority - "Eddie Yue heads the Hong Kong Monetary Office". In: Asia Times Online . July 25, 2019, accessed October 16, 2019 .

[HKMA_Prasident_03-19] Alfred LIU, Kari SOO LINDBERG, Dominic LAU: Hong Kong Names Eddie Yue as Next Monetary Authority Chief - "Hong Kong appoints Eddie Yue as the next head of the monetary office". In: Bloomberg News . July 25, 2019, accessed October 16, 2019 .

[HKMA_Prasident_04-20] HKMA press release - Remarks by CE / MA at Media Standup - "First public speech in the role of HKMA managing director". In: www.hkma.gov.hk. Retrieved October 9, 2019 (Chinese, English).

[HKMA_Prasident_05-21] HKMA press release - Keynote Speech at the HKAB & HKIB Distinguished Speaker Luncheon - "Last public speech in the role of HKMA Managing Director". In: www.hkma.gov.hk. July 25, 2019, accessed September 26, 2019 (Chinese, English).