Hong Kong, July 2nd, Xinhua News Agency - Due to the Hong Kong dollar exchange rate triggering the weak-side exchange guarantee of 7.85 Hong Kong dollars against 1 US dollar under the linked exchange rate mechanism during the New York trading hours, the Hong Kong Monetary Authority (hereinafter referred to as the 'Hong Kong MSA') announced on the 2nd that it would sell US dollars and buy Hong Kong dollars in the market, involving an amount of 20.018 billion Hong Kong dollars. The total surplus of the Hong Kong banking system will decrease to 144.175 billion Hong Kong dollars on July 3rd.

The last time the Hong Kong dollar's weak-side exchange guarantee was triggered was on June 26 this year. According to the linked exchange rate system implemented in Hong Kong since 1983, the Hong Kong dollar against the US dollar has a normal fluctuation range: 7.75 (strong-side exchange guarantee) to 7.85 (weak-side exchange guarantee). If the Hong Kong dollar exchange rate triggers the strong-side exchange guarantee, the Hong Kong Monetary Authority will buy US dollars and sell Hong Kong dollars to stabilize the exchange rate of the Hong Kong dollar at no higher than 7.75; if the Hong Kong dollar exchange rate triggers the weak-side exchange guarantee, the opposite operation will be carried out to stabilize the exchange rate of the Hong Kong dollar at no lower than 7.85. The linked exchange rate system aims to ensure the smooth operation of the currency and foreign exchange markets.