History of Hong Kong's Exchange Rate System[38] Period Exchange rate regime Features 1863–1935 Silver Standard Silver dollars as legal tender December 1935 – June 1972 Sterling exchange Standard exchange rate: £1:HK$16 (December 1935 – November 1967) £1:HK$14.55 (November 1967 – June 1972) July 1972 – November 1974 Fixed exchange rate against the US dollar Exchange rate: US$1:HK$5.650 (June 1972 – February 1973) US$1:HK$5.085 (February 1973 – November 1974) November 1974 – October 1983 Free floating Exchange rates on selected days: US$1:HK$4.965 (25 November 1974) US$1:HK$9.600 (24 September 1983) 1983 – present Linked exchange rate system US$1:HK$7.80 (1983–1998) (for issue and redemption of Certificates of Indebtedness) US$1:HK$7.75 (1998–2005) (The HKMA undertakes to convert the HK dollars in licensed banks’ clearing accounts maintained with the HKMA into US dollars at the fixed exchange rate of HK$7.75 to US$1. The rate has been moving to 7.80 by 1 pip each calendar day starting from 1 April 1999 ending 12 August 2000.) US$1:HK$7.75–7.85 (May 2005 onwards) HKMA set up upper and lower guaranteed limit since 18 May 2005