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StableMedium2026-07-08

Hong Kong foreign reserves stable at US$445.9 billion

Banking SupervisionOtherGeneral RegulatoryCross-JurisdictionalHong KongConf: High
Regulatory Event

HKMA reported official foreign currency reserve assets of US$445.9 billion at end-June 2026, unchanged from end-May, with no unsettled FX contracts.

Analysis

Reserves represent over five times currency in circulation and about 38% of HKD M3, indicating continued robust backing for the Linked Exchange Rate System. Stability supports confidence in HKD convertibility and cross-border settlement.

Relevance

Reserve adequacy underpins HKD peg credibility and informs FX and liquidity risk assumptions for HK-exposed institutions.

Required Action

Action Required

Note stable reserve backing for HKD peg in liquidity and FX stress scenarios; no action required beyond monitoring.

Justification

Reserve data is a standing input to sovereign, FX peg, and liquidity risk assessments.

Control Commentary

Retain current HKD peg stability assumptions in FX and liquidity risk models; monitor monthly reserve trend for deviations.

Source

The HKMA announced that official foreign currency reserve assets of Hong Kong amounted to US$445.9 billion as at end June 2026 (end-May 2026: US$445.9 billion). The total represents over five times the currency in circulation or about 38% of Hong Kong dollar M3.

RH-2026-07-08-007