Foreign Exchange Guide to Hong Kong
The domestic currency in Hong Kong is the Hong Kong dollar with currency code HKD. Read this foreign exchange guide to Hong Kong and the Hong Kong dollar with money transfer and travel tips plus Hong Kong dollar exchange cross rates.
In this guide we review :
- Hong Kong dollar info - general info about the Hong Kong dollar
- Hong Kong dollar in the markets - recent HKD moves and predictions from the FX markets
- Travelling in Hong Kong - currency & money saving tips
- Buying Hong Kong dollar cash online - travel money for Hong Kong
- Sending money to Hong Kong - save on Hong Kong dollar bank transfers to Hong Kong
- Hong Kong dollar exchange rates - latest & historic exchange rates.
Hong Kong dollar (HKD) general currency information
Representing a little less than 2% of the foreign exchange market’s daily turnover, the Hong Kong dollar is the world’s thirteenth most traded currency. It is subdivided into 100 cents.
The Hong Kong dollar has been pegged to the US dollar since 1983 and the USD/HKD exchange rate has been limited to a range of 7.75 to 7.85 since 2005. The Hong Kong dollar’s peg is backed by one of the world's largest foreign exchange reserves (Hong Kong’s official reserves in 2016 were worth US$360 billion).
Hong Kong dollars are issued by the country’s government, but also by three local banks – HSBC, Standard Chartered and Bank of China – providing those banks have on deposit the US dollar equivalent of what they print.
The Hong Kong dollar reached an all-time low against the US dollar in September 1983 when USD/HKD reached 9.6 (HKD/USD 0.104), and its all-time high came in March 1978 when USD/HKD traded at just 4.6 (HKD/USD 0.217).
What is the Hong Kong dollar currency code and symbol?
The three letter currency code for the Hong Kong dollar is HKD and the symbol is $.
Which countries use the Hong Kong dollar?
It is the domestic currency in Hong Kong.
Hong Kong dollar (HKD) in the markets
In April, the Hong Kong dollar weakened to the extreme of its allowed trading range, at 7.85 per US dollar, marking the point at which the Hong Kong Monetary Authority must step in to defend the currency.
The Hong Kong dollar has fallen to multi-decade lows due to a widening of the US-Hong Kong interest rate differential. Despite the HKMA raising interest rates in step with the US Federal Reserve, rates paid on Hong Kong dollars have remained low over the past sixteen months due to abundant liquidity in Hong Kong’s financial system; meanwhile, rates paid on US dollars have risen steadily. For large investors, this provides an incentive to exchange (sell) borrowed Hong Kong dollars for higher-yielding US dollars.
Due to Hong Kong’s sizeable foreign exchange reserves, which are among the largest in the world, a speculative attack on the USD/HKD peg is unlikely.
In late April, the Hong Kong dollar also remained close to long-term lows against the euro.
The interactive chart below shows the HKD to USD exchange rate for the previous 3 months with rate alerts for days when the exchange rate moved up or down significantly or for 30 day highs and lows.
Travel, Currency and Money saving tips for Hong Kong
From the airport the Airport Express is probably the quickest and most direct way to the city, making three total stops at Tsing Yi, Kowloon and Hong Kong Stations. Visitors using the Airport Express will most likely be interested in the Kowloon and Hong Kong Stations, which are located in the main parts of the city. Sometimes the taxi queue at Hong Kong station can be quite long, so if your hotel is near to the station in Lan Kwai Fong or Sheung Wan and you're are travelling light it might be a good idea to walk through the air-conditioned IFC.
While in Hong Kong consider using the Octopus Card. It is a stored-value smart card, similar to London’s Oyster card or Sydney's Opal card, that can be used for quick access and payment for public transportation as well as basic purchases at a many retail shops throughout Hong Kong such as 7-Eleven. It can be topped up any a large range of outlets, even McDonalds.
Public transport in Hong Kong is excellent. There are bus routes covering most of the island, frequent ferries between the islands making up the region, The Star Ferry connecting Kowloon to Hong Kong island is a considered a must see for its views. There are trains into mainland China and the superb MTR underground railway. The city is well connected by trains and great double decker buses. The drivers usually don't speak English and be prepared to sacrifice the small change because they don't return the change for the bus tickets. The cabs in Hong Kong can be expensive. There are a few bus routes that are worth seeing too. Route 973 travels from Tsim Sha Tsui, around Kowloon, crosses the harbour and winds around the coast of Hong Kong Island to Aberdeen, Repulse Bay and terminates at Stanley Market. Up top the double decker bus this is a spectacular trip.
In general, Hong Kong is a very safe city by day and night. The drinking water is often not considered drinkable depending on who you talk to so bottled water is a good idea. Many free tourist maps will also show great walks through the central city that will lead you through many popular areas and help give you a good insight to the city for first time visitors.
Hong Kong Trip Checklist
- Compare HKD travel cash rates - probably why you are here!
- Search Hotel deals - Save on your accomodation in Hong Kong
- Lonely Planet - world's best travel guide (coupon and deals)
Travel money for Hong Kong
Save money and time by Ordering your Hong Kong dollar online from Travelex, you get better rates and can pick up the HKD cash locally or even on travel day at the airport.
Another popular option is to use a Pre-paid Travel Card. Your Debit/Credit Card provider will charge you 2% from market mid-rate, but your bank may also charge an extra 3% as an “Overseas Transaction Charge” plus “Overseas ATM” fees for withdrawing cash.
For card purchases if offered a choice of currencies always select to Pay in Hong Kong dollar otherwise you may get much worst exchange rates.
Travel Money Exchange Rates Compared
Buying HKD Cash with USD 1,000
Rate timestamp : Wed May 23 2018 01:00:03 GMT+0000 (UTC)
Sending money to Hong Kong
What prime property does $US1m buy in Hong Kong?The area (㎡) of prime property that $US1million buys in Hong Kong (Q1 2018) is 22㎡. This is compared to equivalent areas for Monaco 15㎡, New York 25㎡, London 27㎡, Singapore 37㎡, Paris 45㎡, Shanghai 50㎡, Los Angeles 58㎡, Tokyo 70㎡, Berlin 74㎡, Miami 78㎡, Mumbai 94㎡, Istanbul 110㎡, Dubai 138㎡ and San Paulo 172㎡.
How to save when sending money to Hong Kong
When sending money to Hong Kong it’s important to compare your bank’s rates & fees with those we have negotiated with our partner money transfer providers. To get a better deal you should follow these 3 simple steps :
- Open an account with a BER reviewed FX provider (id docs may be required)
- You specify the local or Hong Kong dollar amount you want to transfer
- Make a local currency domestic transfer for the requested amount to the provider's bank account in your country
- Once your funds are received by the provider the converted HKD amount will be transfered to the recipient account you specify in Hong Kong.
Use our Send to HKD calculator to compare the exchange rates of FX specialist providers rates versus your bank's standard rates you can hopefully save around 5% and maybe more - end result is more Hong Kong dollar deposited into the recipient bank account and less margins and fees kept by the banks!
Sending a LARGER international money transfer? Request a Free Multi-Vendor Quote
Compare Foreign Transfers
Sending USD 10,000 to HKD
Rate timestamp : Wed May 23 2018 01:03:32 GMT+0000 (UTC)