Does HKD still exist?

This autonomy has been instrumental in fostering a stable and predictable economic environment in Hong Kong. It enables the territory to formulate and implement monetary policies that are tailored to its unique economic conditions, rather than being subject to the broader policies of mainland China.

Another reason for Hong Kong's adherence to the Hong Kong dollar is its role as an international financial center. The currency's stability and wide acceptance have contributed to Hong Kong's reputation as a SAFE haven for investors and a preferred destination for financial transactions.

Moreover, the Hong Kong dollar's peg to the US dollar, which has been in place since 1983, has helped maintain price stability and confidence in the currency. This peg, managed by the Hong Kong Monetary Authority, ensures that the exchange rate remains within a narrow band, providing a level of certainty that is crucial for international trade and investment.

Furthermore, the Hong Kong dollar's status as a legal tender in the territory ensures that it is widely accepted as a medium of exchange and store of value. This, in turn, promotes economic activity and facilitates the smooth functioning of the territory's financial markets.

Hong Kong's continued usage of the Hong Kong dollar as its official currency stems from several fundamental reasons. One of the primary factors is monetary autonomy. As a special administrative region of China, Hong Kong enjoys a unique status that allows it to maintain a high level of autonomy in various aspects, including the management of its monetary and financial policies.