The Hong Kong Monetary Authority is an independent department under the government of the People's Republic of China (PRC) Special Administrative Region. It is responsible for Hong Kong's monetary policy, banking and monetary management, and acts as the central bank, directly reporting to the Financial Secretary.

HKMA is the institution responsible for maintaining the stability of the monetary and banking systems within the framework of the Hong Kong government. Its main functions are:

1. Maintain the stability of the exchange rate of the Hong Kong dollar.

2. Manage the Exchange Fund (that is, Hong Kong's official reserves) through prudent investment strategies.

3. Promote the stability of the banking system in Hong Kong.

4. Develop Hong Kong's financial market infrastructure to make the currency flow smoothly.