April 19, 2018 / 1:06 AM / 2 years ago

HKMA says has confidence in local currency's peg to US dollar

HONG KONG, April 19 (Reuters) - Hong Kong’s de facto central bank said on Thursday it has confidence in the financial hub’s over three-decade old peg to the U.S. dollar and that its recent operations in the banking system have been smooth.

Howard Lee, deputy chief executive of the Hong Kong Monetary Authority (HKMA), comments came as the central bank continued to intervene in the foreign exchange market to defend the local currency’s peg to the greenback.

The moves are the first intervention by the HKMA since 2015.

The Hong Kong dollar is pegged at 7.8 to the U.S. dollar but can trade between 7.75 and 7.85. Under the currency peg, the HKMA is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.

Reporting By Donny Kwok; Writing by Anne Marie Roantree; Editing by Shri Navaratnam

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