HKMA's response to media enquiries
The following is issued on behalf of the Hong Kong Monetary Authority:
In response to media enquiries regarding triggering of the weak-side Convertibility Undertaking under the Linked Exchange Rate System, the Hong Kong Monetary Authority has the following responses:
The weak-side Convertibility Undertaking (CU) of HK$7.85 to US$1 under the Linked Exchange Rate System (LERS) was triggered during the New York trading hours earlier this morning. The HKMA sold US dollars (USD) for Hong Kong dollars (HKD) of HK$9.42 billion upon the request of banks. The Aggregate Balance will reduce to HK$164.1 billion on June 27. The weak-side CU was last triggered in May 2023.
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The Chief Executive of the HKMA, Mr Eddie Yue,stated, "The strong-side CU was triggered several times in early May, resulting in total inflows of HK$129.4 billion. The subsequent abundance of liquidity in the HKD market led to a decline in HKD interbank rates, and the widened HKD-USD interest rate differential incentivised carry trade activities that sold HKD for USD, causing the HKD exchange rate to weaken. Furthermore, market demand for HKD declined recently due to a combination of factors, including the peaking of the stock dividend payout season, the currency conversion of HKD proceeds raised from recent IPOs or bond issuances by non-local companies for repatriation, as well as the wrapping up of the seasonal half-year-end funding preparation. These factors collectively led to the triggering of the weak-side CU, which is in line with the operation of the LERS.
"The public should exercise caution in managing their interest rate risks and market risks. Depending on the direction of capital flows and the supply-demand conditions for HKD, the weak-side CU may be triggered again in the future. As the Aggregate Balance declines, HKD interbank rates may increase, which is consistent with the design of the LERS. The HKMA will continue to closely monitor market developments and the external environment to ensure the orderly operation of the Hong Kong dollar markets," he added.
Hong Kong Customs detects two dangerous drugs cases and seizes suspected drugs worth about $7.95 million
Hong Kong Customs detected two dangerous drugs cases in Tseung Kwan O and Hong Kong International Airport respectively yesterday (May 21) and today (May 22), and seized a total of about 21.8 kilograms of assorted drugs with a total estimated market value of about $7.95 million. Two men and one woman, aged between 38 and 49, were arrested.
In the first case, Customs officers intercepted a 48-year-old man and a 49-year-old woman in Tseung Kwan O during an anti-narcotics operation yesterday afternoon. About 3.8kg of suspected drugs, including ketamine, methamphetamine, etomidate capsules, psilocybin mushrooms, MDMA and a batch of suspected drug packaging paraphernalia were found in their residence in the same district. They were then arrested.
In the second case, a 38-year-old male passenger arrived in Hong Kong from Amsterdam, the Netherlands, today. During customs clearance, Customs officers found about 18kg of suspected ketamine inside his check-in suitcase and 33 sticks of duty-not-paid cigarette inside his carry-on baggage. The man was subsequently arrested.
The arrested man and woman in the first case have been jointly charged with one count of trafficking in a dangerous drug and one count of possession of apparatus fit and intended for the inhalation of a dangerous drug. The case will be brought up at the Kwun Tong Magistrates' Courts tomorrow (May 23), while an investigation is ongoing for the second case.
Customs will continue to step up enforcement against drug trafficking activities through intelligence analysis. The department also reminds members of the public to stay alert and not participate in drug trafficking activities for monetary return. They must not accept hiring or delegation from another party to carry controlled items into and out of Hong Kong. They are also reminded not to carry unknown items for other people.
Customs will continue to apply a risk assessment approach and focus on selecting passengers from high-risk regions for clearance to combat transnational drug trafficking activities.
Under the Dangerous Drugs Ordinance, trafficking in a dangerous drug is a serious offence. The maximum penalty upon conviction is a fine of $5 million and life imprisonment.
Under the Dutiable Commodities Ordinance, cigarettes are dutiable goods to which the DCO applies. Any person who imports, deals with, possesses, sells or buys illicit cigarettes commits an offence. The maximum penalty upon conviction is a fine of $2 million and imprisonment for seven years.
Members of the public may report any suspected drug trafficking activities to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).
Hong Kong Customs detects two dangerous drugs cases and seizes suspected drugs worth about $7.95 million Source: HKSAR Government Press Releases
Hong Kong Customs detects two dangerous drugs cases and seizes suspected drugs worth about $7.95 million Source: HKSAR Government Press Releases
