A spokesperson for the Hong Kong Monetary Authority stated that the Hong Kong dollar triggered a strong side exchange guarantee of 7.75 Hong Kong dollars to 1 US dollar under the linked exchange rate mechanism during the New York trading session on the morning of the 3rd. This is the first time since October 28, 2020 that the Strong Exchange Guarantee has been triggered. According to the linked exchange rate system implemented in Hong Kong since 1983, the Hong Kong dollar has a normal floating range against the US dollar: 7.75 (strong side exchange guarantee) to 7.85 (weak side exchange guarantee). If the Hong Kong dollar exchange rate triggers a strong exchange guarantee, the Hong Kong Monetary Authority will buy US dollars and sell Hong Kong dollars to stabilize the Hong Kong exchange rate at a level not higher than 7.75; If the Hong Kong dollar exchange rate triggers the weak side exchange guarantee, reverse operations will be carried out to stabilize the Hong Kong exchange rate at a level not lower than 7.85. The Linked Exchange Rate System aims to ensure the smooth operation of currency and foreign exchange markets. The spokesperson stated that the Hong Kong Monetary Authority bought US dollars from the market and sold a total value of HKD 46.539 billion, and the total balance of the banking system will increase to HKD 91.309 billion on May 7th. The recent strong trend of the Hong Kong dollar is mainly due to the increased demand for Hong Kong dollars related to stock investment, which supports the exchange rate of the Hong Kong dollar. In addition, several currencies within the region have recently appreciated against the US dollar, driving the strength of the Hong Kong foreign exchange rate. The Hong Kong Monetary Authority stated that it will continue to closely monitor market dynamics to ensure the orderly operation of the Hong Kong dollar market. (New Society)