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Confidence in a currency
rests on two main assumptions: first, that it will retain its
value in relation to other currencies and articles of daily
necessity; and secondly, that the coins and banknotes that form
its most tangible manifestations are secure from forgery. This
web-version of Money in Hong Kong - A Brief Introduction,
combining materials from summer exhibitions presented by the
HKMA in 2000 and 2001, addresses both
of these subjects. We explain how, under the Linked Exchange
Rate system, the external value of the Hong Kong dollar is kept
at a stable level. We also focus in particular on the security
features that have been added to Hong Kong's banknotes over
the years to deter counterfeiting.
In addition to the focus on currency, we include a brief survey
of Hong Kong's monetary and banking systems from the early years
to the present, so our readers can understand the current work
of the HKMA against a historical perspective.
Our aim in presenting these materials is to promote a greater
understanding of how money works in Hong Kong and the work of
the HKMA. We hope you enjoy reading them.
October 2001 |
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