Currency in Hong Kong: HKD Send & Spend Guide

Hong Kong dollar essentials

The Hong Kong dollar is the official currency of Hong Kong. Its three-letter currency code is HKD, and prices are normally shown with the dollar sign $ or HK$ when they need to be distinguished from other dollar currencies.

Hong Kong dollar banknotes circulate in denominations of $10, $20, $50, $100, $500 and $1,000. Coins come in 10, 20 and 50 cents, plus $1, $2, $5 and $10.

The $20, $50, $100, $500 and $1,000 notes are issued by HSBC, Standard Chartered Bank (Hong Kong) and Bank of China (Hong Kong). The Hong Kong SAR Government issues the $10 notes and coins. Designs therefore vary by issuing bank and series, but older notes issued by the three note-issuing banks remain legal tender.

How the Hong Kong dollar exchange rate works

Hong Kong operates a Linked Exchange Rate System rather than allowing HKD to float freely against the US dollar. The Hong Kong Monetary Authority maintains a convertibility zone of HK$7.75 to HK$7.85 for US$1, centred on the linked rate of HK$7.80.

This narrow band means that HKD usually moves closely with USD. It does not mean that a bank, card issuer or currency exchange must offer customers exactly the linked rate. Retail exchange rates can still include a margin and separate fees, while the value of HKD against currencies such as AUD, GBP, EUR or JPY can move as those currencies move against USD.

You can read more about the arrangement in the Hong Kong Monetary Authority's explanation of the Linked Exchange Rate System.

Paying in Hong Kong

International debit and credit cards are widely accepted by hotels, shopping centres, larger restaurants and many other businesses. Cash is still useful at smaller shops, traditional markets and businesses that set their own payment policies.

Octopus is Hong Kong's widely used stored-value payment system. It began as a public-transport card and can now also be used at many shops, restaurants and other acceptance points. Visitors can obtain a physical Tourist Octopus, while supported phones and watches can use a mobile Octopus. Check the current purchase, top-up and refund terms on the official Octopus visitor information.

For a short visit, carrying a modest amount of cash, a payment card and an Octopus gives you alternatives if one method is not accepted. Do not rely on only one card, and tell your card issuer about travel if it recommends doing so.

Before using a card issued outside Hong Kong, check:

• your issuer's foreign transaction fee;
• the exchange-rate margin applied by your bank or card network;
• any ATM fee shown before you confirm a withdrawal; and
• whether your card issuer charges its own cash-withdrawal fee.

If a terminal or ATM offers to charge you in your home currency, this is dynamic currency conversion. The displayed home-currency amount may include an additional exchange-rate margin. Compare the rate and fees with the option to pay in HKD before accepting it.

Cash, banknotes and ATMs

ATMs are common in urban areas. Machines can have different card-network support, withdrawal limits and operator fees, so check the logos on the ATM and review every charge shown on screen. A larger, less frequent withdrawal may reduce the effect of fixed fees, but only withdraw an amount you can store securely.

Because several issuers and note series circulate, Hong Kong banknotes of the same denomination can have different designs. The HKMA says notes issued by the three note-issuing banks remain legal tender regardless of issue date. A retailer may nevertheless decide which payment methods or denominations it accepts as part of the terms of a transaction.

The HK$1,000 note is genuine legal tender, but some smaller businesses may be reluctant to accept a high-value note. Smaller denominations are more practical for everyday spending. If a note is damaged, the relevant note-issuing bank can assess whether it qualifies for exchange.

The Hong Kong Monetary Authority's notes and coins information explains the current denominations, issuers and security features.

Bringing money into or out of Hong Kong

Travellers arriving in Hong Kong through a specified control point with currency and bearer negotiable instruments worth more than HK$120,000 in total, including the equivalent in foreign currencies, must make a declaration to Customs using the Red Channel.

For someone arriving elsewhere, or departing Hong Kong, disclosure and declaration are required when requested by a Customs officer. An adult accompanying a person under 16 must declare or disclose on the young person's behalf if the adult knows that the young person is carrying more than the threshold.

The rules cover physical currency and bearer negotiable instruments, not just Hong Kong dollar banknotes. Check the current definition, procedure and forms with the Hong Kong Customs and Excise Department before travelling with a large amount.

Sending money to Hong Kong

When comparing an international transfer to Hong Kong, focus on the amount of HKD the recipient will receive. An advertised transfer fee is only one part of the cost. The provider may also include:

• an exchange-rate margin;
• a fee for the chosen payment method;
• intermediary or receiving-bank charges; and
• a premium for faster delivery or assisted service.

You will usually need the recipient's name as it appears on the account, the bank name and account number, and sometimes a bank or branch code and SWIFT/BIC. Confirm the required details with the recipient or provider instead of guessing, because requirements vary by transfer route.

Banks and money-transfer providers may request identification and information about the source or purpose of funds. Larger, unusual or business payments can require additional documents. Compare providers using the same sending amount and payment method, and check whether the quoted recipient amount is guaranteed or only estimated.

Hong Kong dollar questions

Is the Hong Kong dollar the same as the Chinese yuan?

No. Hong Kong uses the Hong Kong dollar (HKD), while mainland China uses the renminbi, whose unit is the yuan (CNY or RMB). Some Hong Kong businesses may accept other currencies or payment systems, but prices and change are normally in HKD and the conversion may not be competitive.

Is the Hong Kong dollar fixed to the US dollar?

HKD is linked to USD through Hong Kong's currency-board system. The HKMA maintains a convertibility zone of HK$7.75 to HK$7.85 per US dollar. Customer exchange rates can still differ because providers add their own margins and fees.

Should I exchange cash before arriving?

There is no single cheapest method for every traveller. Compare the total cost of ordering HKD cash, withdrawing from a Hong Kong ATM and paying directly by card. Having a small amount available on arrival can be convenient, but airport exchange counters are not automatically the best value.

Can I use an Octopus instead of cash?

Octopus is useful for public transport and many everyday purchases, but it is not accepted everywhere. Keep another payment method available. Physical and mobile Octopus products also have different setup, top-up and refund conditions.

Why do Hong Kong banknotes look different?

Three commercial banks issue most Hong Kong banknotes, while the government issues $10 notes and coins. Multiple issuers and series circulate at the same time, so colour and design can vary even when the denomination is the same.