Hong Kong’s de facto central bank said on Wednesday it sold $2.25 billion against the Hong Kong dollar after it hit the weak end of its trading band.
The city’s currency is pegged in a narrow range of 7.75-7.85 to the U.S. dollar, and the Hong Kong Monetary Authority (HKMA) intervenes at both ends to underpin the peg.
HKMA said in a statement, the aggregate balance, the key gauge of cash in the banking system, will shrink by HK$20 billion to HK$144.2 billion Thursday.
Hong Kong’s de facto central bank intervenes as HK dollar hits weak end of range
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