The Bank of Hong Kong borrowed HK$496 million in overnight liquidity from the HKMA discount window yesterday for the first time this month

The Zhitong Finance App learned that yesterday, the Bank of Hong Kong borrowed HK$496 million in overnight liquidity from the Hong Kong Monetary Authority discount window for the first time since this month. With the return of these funds today, the aggregate balance of the Hong Kong banking system fell to HK$173.6 billion.

Funds flowed into the Hong Kong dollar in early May, triggering a strong exchange guarantee under the linked exchange rate system. After the Hong Kong Monetary Authority injected HK$129.4 billion into the market according to the mechanism, the banking system surged nearly quadrupled over the remaining few days to about HK$174 billion, a three-year high.