As the difference between the difference between Hong Kong and the United States has forced Hong Kong officials to frequently intervene in the market to defend the value of Hong Kong dollars, the liquidity between Hong Kong's banks is moving towards the lowest level since the 2008 global financial crisis.
According to Reuters on Wednesday (April 19), when the Hong Kong Financial Authority settled on Thursday (20th), it purchased 6.9 billion Hong Kong dollars (about S $ 1.17 billion) to keep the currency hook, andThe Hong Kong banking system summarizes that the remaining will drop to HK $ 49.2 billion.This key indicator of the liquidity of Hong Kong's interbank has shrunk by about 90%compared with the high point in 2021.
Given that Hong Kong's interest rates are still far lower than the United States, which has actively tightened monetary policy in the past year, HKD's selling is still continuing this month.As the HKMA continues to interfere with the market to defend Hong Kong dollars, the pressure on the increase in local borrowing costs in Hong Kong will increase, which may endanger the Hong Kong real estate market that has just begun to recover.
Hong Kong Bank's interbank interest rate (Hibor) jumped 42 basis points on Wednesday to 2.1%, but this is still a big gap with the 4.8%of the US guarantee financing interest rate.Bloomberg quoted a report from Ruisui Bank last week that people are worried that as the liquidity continues to be pulled away, the bank will become more cautious, leading to the rise in short -term interest rates to squeeze those who do more US dollars and air dollars.
It is reported that in the case of local interest rates lower than the United States, the decline in liquidity is part of the design of the Hong Kong currency system.The Hong Kong HKMA has clearly made it clear that the local financial system is sound and the hook system operates well.
