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HKMA Intervenes with HK$118 Billion to Defend Dollar

3/27/2026

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Story summary
  • In August 1998, the Hong Kong Monetary Authority (HKMA) faced a currency crisis.
  • Speculators targeted the Hong Kong dollar, betting on a stock market crash.
  • The HKMA decided to intervene by enlisting stockbrokers to buy stocks on its behalf.
  • Over ten days, the HKMA spent HK$79 billion (US$10.1 billion) countering speculators.
  • The total intervention reached HK$118 billion, establishing the Exchange Fund's reputation as a powerful financial entity in Hong Kong.