Experts say the e-HKD is being developed rapidly and could be of major importance if it manages to link to China’s digital yuan.
Hong Kong Monetary Authority
Monetary Authority records gradual growth; resident deposits increased 5.2% to MOP 697.4 billion, non-resident deposits rose 4.2% to MOP 321.7 billion.
As MOP is linked to HK$, increase follows Hong Kong’s adjustment based on US Federal Reserve’s move to raise Fed funds rate target range by 75 basis points.
Monetary Authority of Macao raised rate by 50 basis points in May and another 75 basis points last month.
Increase by 75 basis points from 1.25% consistent with Hong Kong as MOP is linked to HK$.
As MOP is linked to HK$, the movements of policy rates in Macao and Hong Kong should be consistent in order to maintain effective operation of the linked exchange rate system.
Rates for both the pataca and the Hong Kong dollar fell in 2020, mirroring an overall drop in the funding costs of local banking.
Joint Announcement of People’s Bank of China, Hong Kong Monetary Authority, and Monetary Authority of Macao on Launch of Cross-boundary Wealth Management Connect Pilot Scheme in Guangdong-Hong Kong-Macao Greater Bay Area
The Monetary Authority of Macao has cut its benchmark interest rate by 25 basis points, following an identical decision six weeks ago.
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