There is no real currency board in Hong Kong. Most banknotes are issued by three note-issuing banks, namely HSBC, Standard Chartered Bank and Bank of China (Hongkong). According to the law, when issuing banknotes, note-issuing banks must submit the equivalent US dollars to HKMA at the exchange rate of HK$ 7.80 to US$ 65,438 +0, and record them in the Exchange Fund account, so as to purchase debt certificates as support for the banknotes issued. On the contrary, when the Hong Kong dollar banknotes are recovered, HKMA will redeem the certificate of indebtedness and the bank will recover the equivalent US dollars from the Exchange Fund. The banknotes and coins issued by the government through HKMA are stored by the correspondent bank and distributed to the public. The transactions between HKMA and the correspondent bank are also settled in US dollars, and the exchange rate is HK$ 7.80 to US$ 65,438+0.
Under the currency board system, the inflow or outflow of funds will adjust the interest rate instead of the exchange rate. If the bank sells foreign currency linked to the local currency (US dollars in Hong Kong) to the currency issuing authority in exchange for the local currency (that is, capital inflow), the base currency will increase; If banks buy foreign currency from the currency issuing authority (that is, capital outflow), the base currency will always shrink. The expansion or contraction of the base currency will cause the local interest rate to fall or rise, which will automatically offset the influence of the original capital inflow or outflow, while the exchange rate will remain unchanged. This is a fully automated mechanism. In order to reduce excessive interest rate fluctuations, HKMA will provide liquidity through the discount window.
2.HKMA。 HKMA is the institution responsible for the stability of the monetary and banking systems within the framework of the Hong Kong government. It was formed by the merger of the Exchange Fund Administration and the Office of Banking Supervision, and its establishment date was April 1993. Since there is no central bank in Hong Kong, HKMA exercises the functions of a central bank.
The top leader of HKMA is the Monetary Authority (President), who is appointed by the Financial Secretary of the Hong Kong Special Administrative Region. The Monetary Authority exercises his functions and powers in accordance with the Exchange Fund Ordinance, Banking Ordinance, Deposit Protection Scheme Ordinance, Clearing and Settlement System Ordinance and other relevant laws and regulations. According to the statutory powers authorized or entrusted by the Monetary Authority, HKMA enjoys a high degree of autonomy in its daily operations.
3. Exchange Fund. Hong Kong's monetary system and exchange rate system are integrated. The core of the monetary system is to stabilize the exchange rate of the Hong Kong dollar. The Exchange Fund managed and controlled by the Hong Kong Special Administrative Region is a government fund that controls the issuance, regulation and stability of the exchange rate of the Hong Kong dollar.
When the silver standard was abolished in 1935, the British Hong Kong government was established in accordance with the Monetary Ordinance. According to the Ordinance, before issuing Hong Kong dollar banknotes, note-issuing banks are required to hand over their reserves of silver, silver dollars and securities to the Exchange Fund in exchange for certificates of indebtedness issued by the Exchange Fund. This monetary system is based on the exchange standard of British pound, with a reserve of 65,438+0,000%. After 1974, the Hong Kong dollar was decoupled from the British pound and floated freely, and the note-issuing bank had to issue Hong Kong dollars in exchange for bonds. When issuing Hong Kong dollars, they often don't have enough foreign exchange reserves. 1983 after the establishment of the linked exchange rate system, in order to maintain a fixed exchange rate between the Hong Kong dollar and the US dollar, the Exchange Fund promised to buy and sell Hong Kong dollar cash indefinitely and become the de facto issuer of the Hong Kong dollar. In fact, note-issuing banks only play the role of agents of the Exchange Fund.
According to the Exchange Fund Ordinance, the Financial Secretary authorizes HKMA to manage the Exchange Fund, and the Financial Secretary has control over the Exchange Fund. The Exchange Fund Advisory Committee advises the Financial Secretary on the investment policies and strategies of the Exchange Fund. The Exchange Fund is managed by two different portfolios, namely, the backing portfolio and the investment portfolio. The support portfolio provides financial support, while the investment portfolio guarantees the value and long-term purchasing power of assets. The Exchange Fund employs global external fund managers to manage about one-third of its total assets and all its stock portfolios.
4. The operating mechanism of the Exchange Fund includes "six sources" and "four purposes". The "six sources" are Hong Kong dollar reserves, coin reserves, transferred fiscal reserves, settlement balance of the banking system, the number of issued Exchange Fund bills and accumulated investment profits. The "four purposes" are to adjust the exchange rate of the Hong Kong dollar, act as a lender of last resort, save the financial market and conduct investment activities.