ENG-2000 — Page 553

APPENDICES

APPENDIX 18

(Chapter 5: 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

HK dollar to one unit of foreign currency

Special

grams of fine gold

Sterling

US dollar

Drawing

Right

18 December 1946

IMF parities established; Hong Kong dollar was pegged to sterling 0.223834

18 September 1949

16.00

3.970

Hong Kong dollar devalued pari passu with sterling by 30.5%

20 November 1967

0.155517

16.00

5.714

Hong Kong dollar devalued pari passu with sterling by 14.3%

23 November 1967

0.133300

16.00

6.667

Hong Kong dollar revalued by 10%, including against sterling but continues pegged to sterling, at new rate

0.146631

14.55

6.061

18 December 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 6 July 1972

Hong Kong dollar pegged to US dollar following the floating of sterling

14 February 1973

US dollar devalued; Hong Kong dollar remains pegged,

at new rate

26 November 1974

Hong Kong dollar allowed to float, ie the government no longer undertook to maintain a particular rate against any other currency

17 October 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 selected major currencies

Effective exchange rate index(1) (trade-weighted)

Sterling

US dollar

End of period

1977

8.94

Japanese yen (HK dollar to one unit of foreign currency)

4.620

2.22

Deutsche -mark

Special Drawing Right

(Nov. 1983 = 100)

0.0194

5.616

N.A.

1994

12.11

7.738

4.99

0.0775

11.298

123.5

1995

11.97

7.732

5.38

0.0750

11.495

122.7

1996

13.07

7.736

4.97

0.0666

11.124

125.3

1997

12.85

7.746

4.33

0.0597

10.451

137.9

1998

12.86

7.746

4.62

0.0682

10.907

131.8

1999

12.59

7.771

4.00

0.0761

10.654

131.5

2000

11.64

7.796

3.76

0.0682

10.161

136.0

Note: (1) The effective exchange rate index is derived from the weighted average of nominal exchange rates of the Hong Kong dollar against the

currencies of 17 major trading partners of Hong Kong.

N.A. Not available

Source: Hong Kong Monetary Authority.

(Enquiry Telephone No.: 2878 8222)

485