The Hong Kong Monetary Authority has spent HK$51 billion (US$6.49 billion) to defend the local currency against the US dollar, said Howard Lee today at a press conference.
“This has reduced the banking aggregate balance within our expectations,” he noted. “When the strong end of the convertibility undertaking is triggered, this will lead to situations of foreign exchange interventions. We have been monitoring the market behavior, realizing that operations have been smooth,” he said.
Lee also said there is no large-scale shorting of the local currency while the slowly climbing Hibor (interbank rate) will continue to rise.
The three-month rate at press time has climbed to 1.33%, almost double last year’s low of 0.75%, while the 12-month rate has gone up to 2.13%.