Exchange Rate Now!

There are many Hong Kongers working and studying in Canada. In major cities like Vancouver and Toronto, it is common to find Chinese who speaks Cantonese, which is the language used nationally by Hong Kong.

With such close ties between these 2 countries (at least for Hong Kongers), the exchange rate between the Hong Kong Dollar (HKD, “Hongkers”) and the Canadian Dollar (CAD, “Loonie”) is therefore something that requires special attention.

The exchange rate between the Hong Kong Dollar compared against the Canadian Dollar is actually simpler than what most people imagine. The Hong Kong Dollar is pegged within a trading band with the US Dollar, with a lower limit of 7.85 HKD = 1 US Dollar and a higher limit of 7.75 HKD = 1 US Dollar. As the variance is small (1.29%), it is usually sufficient for the average Hong Konger to pay attention to just the exchange rate between the US Dollar and the Canadian Dollar instead.

The comparison is also made easier by the fact that Canadian Dollar and the US Dollar are (more…)

The Hong Kong Dollar (HKD, HK$, “Hongkers” – informal name) is pegged to the US Dollar (USD). The initial conversion rate was 5.085 Hong Kong Dollar to 1 US Dollar in 1972 but the H.K. Dollar has since been floated to a current band of exchange rate between 7.75 HKD/ 7.85 HKD = 1 US Dollar. This represents a maximum variance of 1.29%.

To the average tourist between United States and Hong Kong – there is hardly any need to forecast the trend of US Dollar/Hong Kong Dollar exchange rate. You can simply convert either of the currency just the day before you travel, and rest assured that it will not matter materially if you had converted your currency 6 months ago or even earlier. This bode well for Hong Kongers studying in the United States, as a stable peg of Hong Kong Dollar means that it is easy to forecast and budget your study expenses. Similarly, Hong Kongers working in the United States will not be exposed to the currency fluctuations that can relatively reduce your pay against a basket of foreign currencies.

There is no fear that speculative trading will destabilise the trading band of the Hong Kong Dollar compared to the US Dollar (more…)