Date: March 31, 2026
Key Developments Affecting the Hong Kong Dollar (HKD):
1. Economic Growth and Budget Measures
In February 2026, Hong Kong's Financial Secretary announced a fiscal surplus for the 2025-26 financial year, marking a significant turnaround from the previous deficit. The 2026-27 Budget focuses on economic transformation, emphasizing innovation, technology, and financial measures to enhance Hong Kong's competitiveness. (deloitte.com)
2. Monetary Policy Alignment with the U.S. Federal Reserve
On January 29, 2026, the Hong Kong Monetary Authority maintained its base rate at 4.0%, aligning with the U.S. Federal Reserve's decision to hold its target range at 3%–3.75%. This move underscores Hong Kong's policy alignment with the U.S. under the Linked Exchange Rate System, which pegs the HKD at 7.75–7.85. (tradingeconomics.com)
3. Record Growth in Local Currency Bond Issuance
In 2025, Hong Kong's local currency bond issuance reached a record HK$613 billion, up nearly 41% from the previous year. This trend is expected to continue in 2026, driven by deepened market benchmarks and sustained demand. (scmp.com)
4. Strengthening Hong Kong's Role as an Investment Hub
Hong Kong is positioning itself as a strategic Asia-Pacific investment hub in 2026, supported by revived capital markets, stable macroeconomic fundamentals, and deep financial liquidity. Policy and regulatory developments are reinforcing its platform economy, enabling cross-border capital flows and enhancing connectivity with global markets. (china-briefing.com)
These developments are expected to influence the HKD's performance in the coming months.
March 31, 2026
Swiss National Bank (SNB) Maintains 0% Interest Rate
On March 19, 2026, the SNB decided to keep its policy rate at 0%. The bank expressed readiness to intervene in the foreign exchange market to prevent the Swiss franc from appreciating too quickly, which could harm price stability in Switzerland. (snb.ch)
Swiss Franc Remains Strong Amid Global Uncertainty
Despite geopolitical tensions, the Swiss franc continues to strengthen. In early 2026, it appreciated by 2% against the euro and 3.5% against the U.S. dollar, reaching its strongest levels in over a decade. This trend reflects the currency's status as a safe haven during uncertain times. (swissinfo.ch)
SNB Signals Potential Currency Intervention
The SNB has indicated a willingness to intervene in the foreign exchange market if the Swiss franc continues to strengthen rapidly. This approach aims to maintain price stability and support economic growth. (am.lombardodier.com)
Swiss Franc's Strength Puts Pressure on Exporters
The appreciation of the Swiss franc is challenging Swiss exporters, as it makes their goods more expensive abroad. This situation is prompting discussions about the need for currency interventions to support the export sector. (invidis.com)
Experts Predict Continued Strength of Swiss Franc
Analysts expect the Swiss franc to remain strong throughout 2026, driven by Switzerland's political stability, low debt levels, and strong economy. This outlook suggests that the franc will continue to be a preferred choice for investors seeking safety. (swissinfo.ch)