Hong Kong’s monetary authority steps in to rein in the local dollar, as hot money pours in ahead of city’s blockbuster IPOs

Hong Kong’s monetary authority stepped into the financial market to rein back the local currency, which had been pushed over the top end of its trading band against the US dollar by the influx of so-called hot money ahead of several blockbuster initial public offerings on the local stock exchange.The city’s de facto central bank sold almost HK$1 billion worth of Hong Kong dollars, buying the same amount in the US currency to bring the exchange rate below 7.75000, according to a statement by the…

from South China Morning Post https://www.scmp.com/business/banking-finance/article/3087638/hong-kongs-monetary-authority-steps-rein-local-dollar-hot