The government took over production of 1-dollar notes. International rankings of Hong Kong. Retrieved 13 March Denominations issued in the s and s included 1, 5, 10, 25, 50, and dollars.
Foreign currencies such as Indian rupees , Spanish and Mexican 8 reales , and Chinese cash coins circulated. By , the British government gave up all attempts to influence the currency situation in Canada, and by the s it came to the same realisation in Hong Kong: In , the Royal Mint in London began issuing special subsidiary coinage for use in Hong Kong within the dollar system. In , a local mint was established at Sugar Street in Causeway Bay on Hong Kong Island for the purpose of minting Hong Kong silver dollar and half dollar coins of the same value and similar likeness to their Mexican counterparts.
The machinery at the Hong Kong mint was sold first to Jardine Matheson and in turn to the Japanese and used to make the first Yen coins in In the s, banknotes of the new British colonial banks, the Hong Kong and Shanghai Banking Corporation and the Chartered Bank of India, Australia and China , denominated in dollars, also began to circulate in both Hong Kong and the wider region.
In , the international silver crisis resulted in a devaluation of silver against gold-based currencies. Since the silver dollars in the US and Canada were attached to a gold exchange standard, this meant that the silver dollars circulating along the China coast dropped in value as compared to the US dollar and the Canadian dollar.
By , the circumstances had changed to the extent that there was now a dearth of Mexican dollars and the authorities in both Hong Kong and the Straits Settlements were putting pressure on the authorities in London to take measures to have a regular supply of silver dollar coins. London eventually acquiesced and legislation was enacted in attempts to regulate the coinage.
In , the Straits Settlements issued their own silver dollar coin and attached it to a gold sterling exchange standard at a fixed value of 2 shillings and 4 pence. This was the point of departure as between the Hong Kong unit and the Straits unit. By , only Hong Kong and China remained on the silver standard. It was from this point in time that the concept of a Hong Kong dollar as a distinct unit of currency came into existence.
The One-Dollar Currency Note Ordinance of that year led to the introduction of one-dollar notes by the government and the government acknowledged the Hong Kong dollar as the local monetary unit. It was not until that the legal tender of Hong Kong was finally unified. During the Japanese occupation , the Japanese military yen were the only means of everyday exchange in Hong Kong. The yen became the only legal tender on 1 June On 6 September , all military yen notes used in Japanese colonies were declared void by the Japanese Ministry of Finance.
In , the Hong Kong dollar was pegged to the U. Between and , the Hong Kong dollar floated. The lower limit has been lowered from 7. A further aim of allowing the Hong Kong dollar to trade in a range is to avoid the HK dollar being used as a proxy for speculative bets on a renminbi revaluation.
A bank can issue a Hong Kong dollar only if it has the equivalent exchange in US dollars on deposit. The currency board system ensures that Hong Kong's entire monetary base is backed with US dollars at the linked exchange rate.
The resources for the backing are kept in Hong Kong's exchange fund , which is among the largest official reserves in the world. Some of these terms are also used by overseas Chinese to refer their local currency. A slang term in English sometimes used for the Hong Kong dollar is "Honkie". The 1-mil and 1-cent were struck in bronze, with the 1 mil a holed coin. The remaining coins were struck in silver.
Production of the 1-mil ended in , whilst that of the half-dollar and 1-dollar ceased in , with only the half-dollar now with the denomination given as 50 cents resuming production in Production of all silver coins was suspended in , only briefly resumed in and for the production of 5-cent coins.
In , the last 1-cent coins were issued, but the last minting was These were not issued because the Japanese sank a ship carrying 1-cent coins bound for Hong Kong in the Second World War. The following year , cupro-nickel 5 and 10 cents were introduced, replaced by nickel in and nickel-brass between and Copper-nickel 50 cents were issued in and first bore the name "fifty cents" in both Chinese and English, but these were changed to nickel-brass in In , cupro-nickel 1-dollar coins were introduced, these were then reduced in size in They were followed in by nickel-brass 20 cents and cupro-nickel 2-dollar both scallop shaped , and in by decagonal , cupro-nickel 5-dollar coin, changed to a round thicker shape in The 5-cent coin was last issued in , but last struck in In , a bimetallic dollar coin was introduced.
Most of the notes and coins in circulations feature Hong Kong's Bauhinia flower or other symbols. Coins with the Queen's portrait are still legal tender and can be seen, but these are slowly being phased out. However, most still remain in legal tender and are in circulation. Because the redesign was highly sensitive with regard to political and economic reasons, the designing process of the new coins could not be entrusted to an artist but was undertaken by Joseph Yam , Chief Executive of the Hong Kong Monetary Authority , himself who found in the bauhinia the requested "politically neutral design" and did a secret "scissors and paste job".
In , to commemorate Hong Kong's transfer of sovereignty from Britain to the PRC , the government issued a new commemorative coin set which depicted Chinese cultural themes and Hong Kong's landmarks and 19 and 97, marking the year , on each side of the designs. Under licence from the HKMA, three commercial banks issue their own banknotes for general circulation in the region. Notes are also issued by the HKMA itself. In most countries of the world the issue of banknotes is handled exclusively by a single central bank or government.
The arrangements in Hong Kong are unusual but not unique; a comparable system is used in the United Kingdom , where seven banks issue banknotes.
In , the first private bank, the Oriental Bank , was founded. Denominations issued in the s and s included 1, 5, 10, 25, 50, and dollars. These notes were not accepted by the Treasury for payment of government dues and taxes , although they were accepted for use by merchants. Under the Currency Ordinance of , banknotes in denominations of 5 dollars and above issued by the three authorised local banks, the Mercantile Bank of India Limited, the Chartered Bank of India, Australia and China and the Hong Kong and Shanghai Banking Corporation, were all declared legal tender.
The government took over production of 1 dollar notes. In , the government introduced notes for 1, 5 and 10 cents due to the difficulty of transporting coins to Hong Kong caused by the Second World War a ship carrying 1-cent coins was sunk, making this unissued coin very rare. Just before the Japanese occupation, an emergency issue of 1 dollar notes was made consisting of overprinted Bank of China 5 yuan notes.
In , paper money production resumed essentially unaltered from before the war, with the government issuing 1, 5 and 10 cents, and 1-dollar notes, and the three banks issuing 5, 10, 50, and dollar notes.
In , the 5-dollar notes were replaced by a coin, whilst 1,dollar notes were introduced in In , dollar notes were introduced, whilst, in , a dollar coin was introduced and the banks stopped issuing 10 dollar notes.
The government took over production of 1-dollar notes. In , the government introduced notes for 1, 5 and 10 cents due to the difficulty of transporting coins to Hong Kong caused by the Second World War a shipment of 1-cent coins was sunk, making this unissued coin very rare. Just before the Japanese occupation, an emergency issue of 1-dollar notes was made consisting of overprinted Bank of China 5- yuan notes.
In , paper money production resumed essentially unaltered from before the war, with the government issuing notes of 1, 5 and 10 cents and 1 dollar, and the three banks issuing notes of 5, 10, 50, and dollars.
In , the 5-dollar notes were replaced by a coin, whilst 1,dollar notes were introduced in In , dollar notes were introduced, whilst, in , a dollar coin was introduced and the banks stopped issuing dollar notes. The 1-cent note issued by the Government was demonetised and ceased to be legal tender on 1 October Between and an attempt was made to replace privately issued dollar notes with coins issued by the government. The older green dollar banknotes previously issued by two commercial banks are still circulating and remain legal tender , although they are being phased out since September These are popular for lai see and are noticeably scarce in the run up to Chinese New Year.
A commemorative polymer ten-dollar note was issued in July to commemorate the 10th anniversary of Hong Kong's return to China. Authorisation is accompanied by a set of terms and conditions agreed on between the Government and the three note-issuing banks.
In return for their right to issue notes and to provide backing for these notes, the three banks are legally required to hold non-interest bearing Certificates of Indebtedness CI issued by the Exchange Fund. The acquisition of the plant enables the Government, through the HKMA, to be directly involved in the production of Hong Kong currency notes, which is in line with the responsibilities conferred upon the Government under the Legal Tender Notes Issue Ordinance and the Basic Law.
In , the bank has acquired polymer banknote technology to print the ten-dollar banknote for a trial period of two years. The HKMA issues the dollar note and the other three banks issue denominations of 20 blue , 50 green , red , brown and 1, gold dollars. In September , Standard Chartered Bank issued the world's first dollar denomination banknote, at its th year anniversary. Approximately , notes were sold at above face value, in various combinations and presentations, as a commemorative charity issue.
Although legal tender, the notes are unlikely to enter circulation, due to their rarity and expected higher re-sale value. From the 13—20 February , Hong Kong's Bank of China will be taking orders for a new dollar note to commemorate the bank's th anniversary. Although legal tender, the notes aren't intended for circulation. Profits from the sale of the notes will be donated to charitable organizations in Hong Kong. In , following the example of Standard Chartered Bank, the Hongkong and Shanghai Banking Corporation plans to issue a dollar commemorative banknote to celebrate its th anniversary.
It comes in a single note presented in a folder, a 3-in-1 uncut sheet presented in a folder and a in-1 uncut sheet. All issued some or all of the denominations above. Those no longer issued include the 1, 5, and 10 cent notes along with the 1, 5, and 25 dollar notes. In pursuance to section of the Crimes Ordinance Cap of Laws of Hong Kong , anyone who wants to reproduce the whole or any part of any Hong Kong currency note for any purpose in any form must apply in writing to the Monetary Authority for approval.
No reproduced images should be submitted with the application because such an action would already amount to a breach of section of the Crimes Ordinance. It is a criminal offence under the Crimes Ordinance to manufacture or knowingly pass, tender or possess a counterfeit banknote. Offenders are liable to imprisonment of up to 14 years. Adopted from the official website of Hong Kong Monetary Authority. From Wikipedia, the free encyclopedia. Proportion by value of banknotes issued in This section needs expansion.
You can help by adding to it. Retrieved 7 September Archived from the original on 27 September Archived from the original on 12 July