ENG-1978 — Page 340

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Appendix 5

(Chapter 3: Financial Structure)

Exchange Value of the Hong Kong Dollar

Par value of

the HK$ in

grams of

fine gold, as

HK$1

£1=

US$1

SDRI

reported to

£

US$

SDR

HK$

HK$

HK$

December 18, 1946

IMF parity established

September 18, 1949

the IMF

0-223 834

0.062 5

0.2519

16.00

3.970 22

Hong Kong dollar devalued by 30.5% pari passu with the pound sterling

0-155 517

0-062 5

0-175

.16.00

5-714 29

November 20, 1967

Hong Kong dollar devalued by 14.3% pari passu with the pound sterling

0·133 300

0.062 5

0.15

16.00

6.666 67

November 23, 1967

Hong Kong dollar revalued by 10% against the pound sterling reducing the previous change in the gold parity of the Hong Kong dollar from 14·3% to 5·7%

December 18, 1971

Following the currency realignment in December 1971, the Hong Kong dollar appreciated by 8.57% against the US dollar while the par value in terms of gold and the existing parity for sterling were maintained

July 6, 1972

0.146 631

0.068 75

0.165

14-545 5 6-060 61

0-146 631

0-068 75 0-179 14

0.165

14-5455 5.582 13

6.060 61

Following the floating of the pound sterling in June 1972, the Hong Kong dollar was pegged to the US dollar

0-146 631*

0-17699 0.163 018

5.65

6.134 29

February 14, 1973

Following the US dollar devaluation,

the US$/HK$ central rate was adjusted 0.146 631*

0-196 657 0-163 018

5-085

6.134 29

November 26, 1974

Hong Kong dollar allowed to float,

ie the government no longer undertook to maintain the rate against the US dollar within 24% either side of the central rate of US$1 = HK$5.085

0.146 631*

Note: While effective exchange rates for the Hong Kong dollar have changed since 1971, the formal par value in terms

of gold, as recorded by the IMF, remains unaltered.