Appendix 7
(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
331
grams of
£I=
US$1
SDRI=
fine gold
HKS
HKS
HK$
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%
0.155517
16.00
5.714
November 20, 1967
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
0.146631
14.55
6.061
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$1
14.55
5.582
11
6.061
5.650
6.134
5.085
6.134
(B) Exchange rates of the Hong Kong dollar against several major currencies
£
US$
DM
¥
SDR
Effective exchange rate (24-28 Oct 1983=100)
End of period
(HK dollars to one unit of foreign currency)
1974
11.53
4.910
2.03
0.0164
6.012
150.7
1980
12.27
5.130
2.61
0.0253
6.543
128.5
1981
10.88
5.675
2.52
0.0260
6.605
125.3
1982
10.58
6.495
2.73
0.0278
7.165
117.2
1983
11.32
7.780
2.86
0.0337
8.145
101.1
1984
9.11
7.823
2.49
0.0312
7.668
115.4
1985
11.27
7.811
3.18
0.0390
8.580
112.7
1986
11.48
7.795
4.01
0.0488
9.534
110.3
1987
14.52
7.760
4.91
0.0637
11.009
100.5
Note:
* The effective 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. A new series of the indexes has been released since 28 September 1987. The new weighting system is as follows:
Indexes for 1974-1980, 1972 weights
1981-Sep 1983, 1981 weights
Oct 1983 onwards, average of 1984–1986 weights