APPENDIX 18
(Chapter 5: Financial and Monetary Affairs)

Exchange Value of the Hong Kong Dollar
(A) Historical changes in the exchange rate system

  Par value of
the HK$ in
grams of
fine gold		 HK dollar to one unit of foreign currency
  Sterling US
dollar		 Special
Drawing
Right
18 December 1946        
IMF parities established; Hong Kong dollar was pegged to sterling 0.223834 16.00 3.970  
18 September 1949        
Hong Kong dollar devalued pari passu with sterling by 30.5% 0.155517 16.00 5.714  
20 November 1967        
Hong Kong dollar devalued pari passu with sterling by 14.3% 0.133300 16.00 6.667  
23 November 1967        
Hong Kong dollar revalued by 10%, including against sterling
but continues pegged to sterling, at new rate		 0.146631 14.55 6.061  
18 December 1971        
As part of the general currency realignment, Hong Kong dollar
and sterling appreciated by 8.57% against US dollar. As a result
of USA terminating, in August 1971, the convertibility of
US dollar into gold, gold par value no longer had a practical
meaning. IMF began to adopt the SDR as its accounting unit		   14.55 5.582 6.061
6 July 1972        
Hong Kong dollar pegged to US dollar following the floating
of sterling		     5.650 6.134
14 February 1973        
US dollar devalued; Hong Kong dollar remains pegged,
at new rate		     5.085 6.134
26 November 1974        
Hong Kong dollar allowed to float, ie the government no longer
undertook to maintain a particular rate against any other
currency		        
17 October 1983        
Hong Kong dollar was linked to US dollar, through a new
arrangement in the note-issue mechanism, at a fixed exchange
rate of HK$7.80=US$1		        

(B) Exchange rates of the Hong Kong dollar against selected major currencies

                    Effective exchange rate index (1)
  Sterling
US dollar Deutsche
-mark		 Japanese
yen		 Special
Drawing Right		     (trade-weighted)
(Nov. 1983 = 100)
End of period    
(HK dollar to one unit of foreign currency)
    
1977 8.94   4.620 2.22 0.0194 5.616     N.A.
1994 12.11   7.738 4.99 0.0775 11.298     123.5
1995 11.97   7.732 5.38 0.0750 11.495     122.7
1996 13.07   7.736 4.97 0.0666 11.124     125.3
1997 12.85   7.746 4.33 0.0597 10.451     137.9
1998 12.86   7.746 4.62 0.0682 10.907     131.8
1999 12.59   7.771 4.00 0.0761 10.654     131.5
2000 11.64   7.796 3.76 0.0682 10.161     136.0
 
Note: (1) The effective exchange rate index is derived from the weighted average of nominal exchange rates of the Hong Kong dollar against the currencies of 17 major trading partners of Hong Kong.
  N.A. Not available
Source: Hong Kong Monetary Authority.
(Enquiry Telephone No.: 2878 8222)