Overnight loans in the Hong Kong banking sector rose to the highest level in nearly five months, indicating that a series of interventions aimed at supporting the local currency may have had the expected effect on the money market. The Hong Kong Monetary Authority placed HK$4.67 billion through the discount window on Tuesday. The data shows that this is the highest since February. Overnight interbank lending rates have been close to zero, and the 1-month Hibor is at twice the level equivalent to the mid-June low. The Hong Kong Monetary Authority bought HKD three times in a week in July to prevent it from falling below the weak exchange guarantee.

Overnight loans in the Hong Kong banking sector rose to the highest level in nearly five months, indicating that a series of interventions aimed at supporting the local currency may have had the expected effect on the money market. The Hong Kong Monetary Authority placed HK$4.67 billion through the discount window on Tuesday. The data shows that this is the highest since February. Overnight interbank lending rates have been close to zero, and the 1-month Hibor is at twice the level equivalent to the mid-June low. The Hong Kong Monetary Authority bought HKD three times in a week in July to prevent it from falling below the weak exchange guarantee.