The Hong Kong Monetary Authority: Between April 23 and June 22, the Hong Kong dollar fluctuated between 7.8289 and 7.8397 against the US dollar, with the exchange rate remaining generally stable.

On August 7, the Hong Kong Monetary Authority released the Currency Issuance Bureau Operational Report for the period from April 23 to June 22, 2026. The Hong Kong Currency Issuance Committee (the Committee) noted that during the reporting period, the Hong Kong dollar (HKD) fluctuated between 7.8289 and 7.8397 against the US dollar. The HKD exchange rate remained relatively stable, with fluctuations mainly driven by southbound fund flows related to the Stock Connect and other capital market activities. Under the linked exchange rate system, the overnight Hong Kong dollar interbank offered rate (HIBOR) generally followed the movements of US dollar interest rates, while also being influenced by the local supply and demand for HKD liquidity. During the reporting period, the overnight HIBOR occasionally rose, reflecting end-of-month demands and capital market-related funding needs, while longer-term HIBOR saw a slight increase. The exchange guarantee was not triggered during the reporting period, with the aggregate balance remaining stable at approximately HKD 54 billion. The usage of the discount window showed no abnormalities. Overall, trading in the HKD foreign exchange and interbank market continued to be smooth and orderly. The Committee noted that by the end of the reporting period, the monetary base had increased to HKD 2,072.94 billion. All changes in the monetary base corresponded exactly with changes in foreign exchange reserves, in line with the principles of the Currency Issuance Bureau system. In terms of monitoring risks and instability factors, the Committee observed that in the United States, strong capital spending in artificial intelligence and robust consumer spending were supporting economic growth. However, ongoing conflicts in the Middle East have continued to drive inflation related to energy, coupled with a labor market that is stronger than expected, raising concerns about the potential for further interest rate hikes by the Federal Reserve. Meanwhile, deepening concerns about fiscal sustainability have led to a sharp rise in long-term bond yields, adding further pressure to future fiscal conditions. The Committee noted that in the Asia-Pacific region, despite ongoing conflicts in the Middle East, economies in the region recorded robust growth in the first quarter, partially benefiting from strong export performance driven by artificial intelligence. However, energy shocks have pushed up inflation in the region, and downward pressure on local currencies has prompted some central banks in the region to significantly raise policy interest rates. The Committee observed that due to generally strengthening domestic and external demand, Hong Kong's economic growth accelerated in the first quarter, with momentum carrying into the second quarter. Inflation has rebounded but remains controlled, and the labor market has remained relatively stable. On the other hand, buoyed by positive market sentiment, the residential property market has maintained upward momentum, while the commercial property market continues to face pressure; however, prime office buildings in core areas are showing signs of improvement. Looking ahead, economic expectations remain robust, but the outlook is still subject to downside risks, including the Middle East conflict, the sustainability of the artificial intelligence investment boom, evolving global trade policies, and the direction of US policy interest rates.