ENG-1980 — Page 345

262

Appendix 5

(Chapter 3: Financial System and Economy)

Exchange Value of the Hong Kong Dollar

Par value of

the HK$ in

December 18, 1946

IMF parity established

grams of

fine gold, as

HK$I=

£1 =

US$1

reported to

the IMF

£

US$

SDR

HK$

HK$

= SDRI

HK$

0.223834

0.0625

0.2519

16.00

3.97022

September 18, 1949

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

0.155517

0.0625

0.175

16.00

5.71429

November 20, 1967

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

0.133300

0.0625

0.15

16.00

6.66667

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

0.146631

0.06875 0.165

14.5455 6.06061

0.146631

0.06875 0.17914 0.165

14.5455 5.58213 6.06061

July 6, 1972

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

0.146631*

0.17699 0,163018

5.65

6.13429

February 14, 1973

Following the US dollar devaluation, the US$/HK$ central rate was adjusted

0.146631*

0.196657 0.163018

5.085

6.13429

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$1HK$5.085

0.146631*

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.

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Appendix 6