Hong Kong HKMA: Hong Kong dollar interest rates fluctuate sharply banks should make good use of liquidity management tools

[Hong Kong Monetary Authority: Hong Kong dollar interest rates fluctuate sharply banks should make good use of liquidity management tools]. Yu Weiwen, chief executive of the Hong Kong Monetary Authority, said that there have been relatively large fluctuations in Hong Kong dollar interest rates (HIBOR) recently, and the current rise in Hong Kong dollar interest rates is different from the one-day sharp rise in US interest rates in 2019. The HKMA has been maintaining communication with banks, requiring them to do a good job in liquidity management, including close communication with large customers, grasp their plans and arrangements for the receipt and payment of Hong Kong dollars, and make arrangements to avoid unnecessary retention of large amounts of Hong Kong dollars. The HKMA also reminds banks to make use of the various liquidity arrangements of the HKMA whenever necessary. Recently, some banks have used the discount window of the HKMA, which shows that banks have gradually adapted to the new market changes and made good use of these liquidity management tools. The HKMA will closely monitor market changes and maintain monetary and financial stability. (reporter Cheng Mengqi)