Exchange Fund (Hong Kong)

The Hong Kong Exchange Fund is a reserve pool managed by the Hong Kong Monetary Authority, created to maintain the stability of Hong Kong’s currency, the Hong Kong dollar. It acts as a financial buffer by holding foreign currency and gold, allowing the government to intervene in currency markets if needed. This helps ensure the Hong Kong dollar remains stable and trustworthy, supporting economic confidence and financial stability in the region. Essentially, it’s a safeguard that helps protect Hong Kong’s monetary system from external shocks and currency fluctuations.