The Hong Kong Dollar is one of the most traded currencies in the world. The currency symbol is $ or HK$ to distinguish it from the other Dollar currencies. A Dollar consists of 100 cents.
Economy
Hong Kong is considered one world's leading international financial centers.
Hong Kong has a major capitalist service economy characterized by low taxation and free trade.
Hong Kong is considered the world’s freest economy according to the Index of Economic Freedom.
Despite the 2009 downturn in economic growth, the country has recovered well.
Hong Kong’s economic strengths, including a sound banking system, virtually no public debt, a strong legal system, ample foreign exchange reserves, rigorous anti-corruption measures, and close ties with mainland China are the main reasons for recovery.
History
In 1841, trading in Hong Kong did not use any local currencies. Foreign currencies such as Indian Rupees, Spanish and Mexican Reales, and Chinese coins were circulated.
In 1863, the Royal Mint in London began issuing special subsidiary coinage for use in Hong Kong within the Dollar system.
During the Japanese occupation, Japanese military Yen were the only means of everyday exchange in Hong Kong.
In 1972, the Hong Kong Dollar was pegged to the US Dollar at a rate of 5.65 HK$ = 1 USD.
As of May 18, 2005, in addition to the lower guaranteed limit, a new upper guaranteed limit was set for the Hong Kong Dollar at 7.75 to the American Dollar.
Available coins are 10, 20, and 50 cent coins; 1, 2, 5, and 10 dollar coins, and banknotes of 10, 20, 50, 100, 500, and 1,000 dollars.
