HKMA intervenes again to sell HK$ 12bln to maintain trading band

Once again the Hong Kong Monetary Authority have had to step in as the HK$ trades close it its 7.75 lower limit vs USD

Quite how much more they will need/be able to throw at it is unknown but they have been in frequently of late

Once again this morning the HK authorities have claimed to have no interest in dropping or changing the peg as I reported earlier but for how much longer

The Hong Kong $ is pegged at 7.80 vs USD but can trade between 7.75-7.85. However under the rules of the peg the HKMA is obliged to step in when either extreme is traded to keep the band intact

HKMA says the latest intervention will lift the aggregate balance (the sum of balances on clearing accounts maintained by banks with them) to HK$ 357.95bln on 5 Oct when the injected funds will be settled.