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Hong Kong intervenes to defend the peg of its currency Exchange Rate, due to the depreciation of its currency.

According to Gate News bot, Bloomberg reported that Hong Kong bought Hong Kong dollars on Thursday to support its Exchange Rate, aiming to defend the pegged exchange rate system with the US dollar.

After the exchange rate in Hong Kong reached the weak side of the allowable trading range of 7.75-7.85, the Hong Kong Monetary Authority bought 9.42 billion HKD (1.2 billion USD) to exchange for USD.

This move will not only push the yuan back into the allowable trading range but will also make bearish bets more expensive. The method is to drain liquidity from the financial system, raising borrowing costs.

The last time the Hong Kong Monetary Authority intervened in this direction was in May 2023.

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