Luisa Crawford
Feb 20, 2026 09:29
Hong Kong’s Foreign money Board confirms orderly HKD markets with alternate charge buying and selling 7.7673-7.7900 in opposition to USD. Combination Steadiness regular at HK$54 billion.
Hong Kong’s foreign money peg system operated with out stress via This fall 2025, with the Hong Kong greenback buying and selling in a good band of seven.7673 to 7.7900 in opposition to the dollar, in accordance with minutes from the HKMA’s Foreign money Board Sub-Committee assembly held January 12.
The Financial Base expanded to HK$2,040.65 billion by late December, with all adjustments absolutely backed by overseas reserves beneath Foreign money Board guidelines. The Combination Steadiness—a key liquidity indicator watched by FX merchants—held regular round HK$54 billion, and the HKMA’s Convertibility Undertakings weren’t triggered in the course of the interval.
Charge Dynamics Mirror Fed Strikes
HIBOR charges tracked their USD counterparts as anticipated beneath the Linked Alternate Charge System, although native funding situations added some volatility. Interbank charges softened via October and November on equity-related demand earlier than seasonal pressures pushed them larger into year-end.
Following the Fed’s This fall charge cuts, Hong Kong banks trimmed Finest Lending Charges by 12.5 foundation factors in early November. They held regular in December, leaving market charges between 5.000% and 5.500% at interval finish.
Macro Backdrop Reveals Combined Indicators
The Sub-Committee flagged a number of threat components price monitoring. U.S. markets obtained non permanent reduction from commerce truces and the federal government reopening, however “Okay-shaped” consumption patterns, AI growth sustainability questions, and labor market weak point stay issues.
Mainland China’s progress moderated in October-November 2025, although the latest U.S.-China commerce truce ought to ease near-term export stress. Beijing’s fifteenth 5-Yr Plan (2026-2030) will prioritize technological self-reliance and home consumption.
Hong Kong’s personal financial system grew via This fall, pushed by merchandise exports and stabilizing retail gross sales. The housing market confirmed additional restoration as monetary situations eased, although business actual property nonetheless struggles with elevated emptiness charges.
What Merchants Ought to Watch
The Alternate Fund’s whole property stood at HK$4,151.4 billion as of December 31, 2025, offering substantial backing for the foreign money peg. With the HKMA projecting average 2026 progress supported by tech demand and improved sentiment from eased commerce tensions, the HKD appears set to stay well-anchored.
For crypto merchants with HKD publicity or these watching Asian liquidity situations, the steady Combination Steadiness suggests no imminent funding stress which may spill into digital asset markets. The subsequent Foreign money Board evaluation masking January-March 2026 knowledge ought to arrive in Might.
Picture supply: Shutterstock
