Hong Kong Monetary Authority (HKMA)

The Hong Kong Monetary Authority (HKMA) is Hong Kong's de facto central bank, established in 1993. It manages the Exchange Fund, which is used to maintain currency stability. The HKMA is currently newsworthy due to its recent financial performance and policy decisions. The Exchange Fund reported record earnings in 2025, a 51% increase, driven by strong stock market returns and rising gold prices. The HKMA has also been coordinating with the People's Bank of China (PBOC) to increase yuan liquidity for Hong Kong lenders, enhancing Hong Kong's role as an offshore yuan center. Furthermore, the HKMA is closely monitoring US Federal Reserve rate decisions, mirroring their recent decision to hold rates steady. While local banks may not immediately cut prime rates, interbank rates are expected to follow US rates lower, benefiting borrowers. The HKMA is also focused on improving banking services for elderly customers, reflecting the city's aging population.