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Appendix 5
(Chapter 5: The Economy)
Exchange Value of the Hong Kong Dollar
(A) Historical changes in the exchange rate system
Par value of the HK$ in
grams of fine gold
£1
USSI
=
HK$
HK$
December 18, 1946
IMF parities established; Hong Kong dollar is pegged to sterling
0.223834
16.00
3.970
September 18, 1949
=
Hong Kong dollar devalued pari passu with sterling by 30.5%
November 20, 1967
0.155517
16.00
5.714
=
Hong Kong dollar devalued pari passu with sterling by 14.3%
0.133300
16.00
6.667
November 23, 1967
Hong Kong dollar revalued by 10%, including against sterling, but continues pegged to sterling, at new rate
December 18, 1971
As part of the general currency realignment, Hong Kong dollar and sterling appreciate by 8.57% against US dollar. As a result of USA terminating, in August 1971, the convertibility of US dollar into gold, gold par value no longer has a practical meaning. IMF begins to adopt the SDR as its accounting unit
July 6, 1972
Hong Kong dollar pegged to US dollar following the floating of sterling
February 14, 1973
US dollar devalued; Hong Kong dollar remains pegged,
at new rate
November 26, 1974
Hong Kong dollar allowed to float, ie the government
no longer undertakes to maintain a particular rate against
any other currency
October 17, 1983
}
Hong Kong dollar was linked to US dollar, through a new arrangement in the note-issue mechanism, at a fixed exchange rate of HK$7.80=US$1
0.146631
14.55
6.061
SDRI= HK$
14.55
5.582
6.061
5.650
6.134
5.085
6.134
£
US$
DM
End of period
(HK dollars to one unit of foreign currency)
(B) Exchange rates of the Hong Kong dollar against several major currencies
Trade-weighted Index* Calculated with 1981 trade weights (18.12.71=100)
SDR
1974
11.53
4.910
2.03
0.0164
6.012
105.1
1980
12.27
5.130
2.61
0.0253
6.543
87.6
1981
10.88
5.675
2.52
0.0260
6.605
85.2
1982
10.58
6.495
2.73
0.0278
7.165
79.5
1983
11.32
7.780
2.86
0.0337
8.145
68.3
1984
9.11
7.823
2.49
0.0312
7.668
75.9
Note:
* The trade-weighted exchange rate index is derived from a weighted average of nominal exchange rates of the Hong Kong dollar against the
currencies of 15 principal trading partners.
Figures in table (B) are based on closing middle-market T/T rates.