Get Your USD From the Hong Kong Monetary Authority

The HKMA spent $0.4 billion of of its ~$500 billion in reserves defending the Hong Kong dollar this week.
Bloomberg: Hong Kong Needs More Intervention to Clear Liquidity Glut
Hong Kong’s aggregate balance of interbank liquidity, which will shrink if the Hong Kong Monetary Authority’s currency intervention continues following Thursday’s move, will drop to about HK$176.5 billion ($22.5 billion) on Monday, according to the HKMA. But interest rates won’t move significantly until that figure drops below HK$50 billion, Ryan Lam, head of research at Shanghai Commercial Bank, estimates.
That target would be hit in 25 with a straight line calculation if this week's 3-day intervention pace extends to 5 days. If the Friday intervention holds, then there's about one month until Lam's target is hit.

USDHKD was still at 7.85 following this week's intervention.

No comments:

Post a Comment