Currency Exchange Rates

Hong Kong Currency Exchange Rate

The Hong Kong Currency Exchange Rate

Hong Kong Currency Exchange Rate

Hong Kong is one of the countries that use the dollar as its currency. It is usually abbreviated as HK$ to avoid confusion between the Hong Kong dollar and other dollars when trying to find the Hong Kong Currency Exchange Rate. The Hong Kong dollar is the official currency of the Hong Kong Special Administrative Region in China.

Hong Kong has used a variety of currency since its inception as a free trade port in 1841. In fact, when Hong Kong was established, there was no local currency and instead, merchants used a variety of currency from India, Spain, Mexico, China and Britain. Eventually this got to be too confusing so Hong Kong decided to base their currency on the rate of silver and made coins from the metal. After the Hong Kong mint was closed in 1868, Hong Kong used silver dollar coins and silver trade dollars as its currency.

Hong Kong Currency Exchange Rate

It wasn't until 1937 that the Hong Kong dollar became the official currency of the region. At the time the Hong Kong Currency Exchange Rate was not favorable at all. One British pound was the equivalent of sixteen Hong Kong dollars.

Hong Kong's dollar was replaced by the Japanese yen for a few years in the forties, but the Hong Kong dollar was reinstated by 1943, at the same currency exchange rate of sixteen Hong Kong dollars to every British pound.

In October of 2007, the Hong Kong Currency Exchange Rate stood at 7.75 Hong Kong dollars to one US dollar. Some officials say that the Hong Kong dollar is rising because the market in Hong Kong and China is so favorable when compared with the markets in the US or in Europe. The Hong Kong currency exchange rate also benefits from the ever rising interest prices in other countries, which help make Hong Kong look like a viable alternative to living a financially sound life.

Any number of factors can affect the Hong Kong currency exchange rate, but the most important factor is the simple idea of supply and demand. If there is a demand for Hong Kong dollars then the value of the Hong Kong dollar will go up all over the world. To that end, if there is a great demand for products that are produced in Hong Kong then the Hong Kong currency exchange rate will continue to tip in Hong Kong's favor. More demand for goods being made means more demand for the Hong Kong Currency pushing up the exchange rate.

This doesn't mean that there aren't some underhanded workings to the Hong Kong currency exchange rate happening by people who know how to play the stock market. Attempts to stop the growth rate of the Hong Kong currency exchange rate were recently thwarted.

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