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Then there’s the **HKD, the Hong Kong dollar**. Unlike many currencies that float freely, the HKD is pegged to the USD. This means the Hong Kong Monetary Authority (HKMA) – basically, Hong Kong's central bank – keeps the HKD's exchange rate within a narrow band of around 7.75 to 7.85 HKD per 1 USD. This peg is super important because it provides stability and predictability for businesses and investors dealing with HKD. They know their currency will stay at roughly the same value against the USD, no matter how the global markets shift. This stability is a cornerstone of Hong Kong's financial system and is a big draw for international businesses.
