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The Hong Kong dollar is issued by one of three banks in Hong Kong under the supervision of the territory's de facto central bank Hong Kong Monetary Authority. These banks are the Bank of China (Hong Kong), Standard Chartered Bank and HSBC. Each bank has its own design for the paper bank notes, but the size and colors are consistent for each denomination. Starting in 1997, prior to the establishment of the Special Administrative Region notes and coins with Queen Elizabeth II's portrait were gradually withdrawn from circulation, and now most of the notes and coins in circulations feature Hong Kong's bauhinia blakeana flower or other symbols.
The Hong Kong dollar is pegged to the United States dollarThe United States dollar is the official currency of the United States. It is also widely used as a reserve currency outside of the United States. Currently, the issuance of currency is controlled by the Federal Reserve Banking system. The most commonly u since October 17, 1983Events January January 1 Beat Raaflaub became Basel Boys Choir's new conductor January 1 the ARPANET officially changes to use the Internet Protocol, creating the Internet. January 1 compulsory wearing of seat belts becomes law in the UK. January 2 The mu at HK$7.80 per U.S. dollar through the currency board system . A bank can only issue a Hong Kong dollar if it has the equivalent exchange in U.S. dollars on deposit.
The currency board system ensures that Hong Kong's entire monetary base is backed with U.S. dollars at the linked exchange rate. The resources for this backing are kept in Hong Kong's Exchange Fund, which is among the largest official reserves in the world.
Even though the HKD is the currency of Hong Kong, it is widely accepted in Mainland ChinaAll islands except Hainan and Taiwan are invisible on the map. Mainland China ( or , pinyin: Zhongguo Dalu, lit. The Chinese Massive Landmass" or "Continental China"), is an informal geographical term which is usually synonymous with the area currently ad and Macao.
Between 1863Events January-March January 1 Abraham Lincoln delivers the Emancipation Proclamation during the second year of the American Civil War. January 1 The first claim under the Homestead Act is made for a farm in Nebraska January 8 Ground is broken in Sacramen to 1935Events January January 1 Italian colonies of Tripoli and Kyrenaika are joined together as Libya January 7 World War II: Italian premier Benito Mussolini and French foreign minister Pierre Laval conclude agreement in which each power undertakes not to oppo, Hong Kong used silver dollars as legal tender.
The local unit was pegged to the British pound from December 1935 to November 1967 at the rate of HK$16 per pound, and from November 1967 to June 1972 at HK$14.55 per pound.
In July 1972, it was repegged to the U.S. dollar at HK$5.65 per dollar, and in February 1973, it was re-set to HK$5.085 per dollar.
The Hong Kong dollar was allowed to float freely in November 1974 until it was repegged in October 1983.