Hong Kong Dollar (HKD)

The Hong Kong dollar is the currency of the province of Hong Kong, and like other dollar-based currency system, it uses the dollar sign, $, to denote currency amounts. To differentiate the Hong Kong dollar from other dollar currencies, the Hong Kong dollar is also written as HK$. In foreign currency exchange markets, the Hong Kong dollar is designated by a unique three-letter code, HKD.

The HKD has been loosely linked to the United States dollar since the early 1960s, and it has become more tightly linked since the 1980s. The entire monetary system in Hong Kong is backed by the US dollar, and the province has the world’s largest reserve fund of USD. At last estimate, the reserve totalled over US$700 billion. The Hong Kong dollar occupies the number eight slot on the list of the world’s most traded currencies.

The decimal-based currency has a minimum denomination of a one-cent piece whose symbol is ¢. 100 cents compose a dollar, though the word ‘cent’ is rarely used when currency is discussed in Chinese. Instead, ‘units’ is used for dollars and ‘decimals’ for cents. For example, $11.23 would be spoken as ’11 units and 23 decimals’ or with various slang terms.

The currency uses both coinage and banknotes as legal tender, but Hong Kong banks can exchange the currency only if it has that amount in US dollars on deposit, even if the received currency is not United States dollars.

Coins currently used in the HKD currency system are the 10¢, 20¢, 50¢, $1, $2, $5and $10 coins. Each denomination has a different size, shape and metal composition from others. The coins are either silver-coloured, bronze-coloured or both. The cent pieces are smaller overall than the dollar pieces and are bronze. The $1, $2 and $5 pieces are silver, and the $10 piece has a bronze centre with a silver outer ring.

Authorised by the Hong Kong Monetary Authority (HKMA), three commercial banks issue currency, and while the same denominations are issued, the issuing authority is readily recognised by the ‘mascot for design.’

Banknote denominations include $20, $50, $100, $500 and $1000. The Hongkong and Shanghai Banking Corporation used a mascot of a lion. The Bank of China (Hong Kong) used a series mascot of the Bank of China Tower, and the Standard Chartered Bank used various dragon designs.

However, in 2010 as a commemoration of Hong Kong reverting back to Chinese rule, a special series was issued. The $500 and $1000 banknotes have the image of the Lion and the HSBC Building. The $500 note holds a Fenghuang, and the $1000 note has an image of a Chinese dragon.