ENG-1992 — Page 484

APPENDICES

APPENDIX 12

(Chapter 6: Financial and Monetary Affairs)

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

£] =

US$1

HK$

HK$

SDRI = HK$

December 18, 1946

IMF parities established; Hong Kong dollar was 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 appreciated 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 had a practical meaning. IMF began 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 undertook 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

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

1987

14.52

7.760

4.91

0.0637

11.009

100.5

1988

14.17

7.808

4.42

0.0626

10.507

100.6

1989

12.60

7.807

4.63

0.0544

10.261

109.3

1990

14.95

7.801

5.20

0.0576

11.098

109.3

1991

14.53

7.781

5.13

0.0622

11.130

109.2

1992

11.77

7.741

4.80

0.0623

10.644

114.2

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.

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