June 2004

I.   Membership Status

As a Special Administrative Region of the People's Republic of China, Hong Kong SAR is not a member of the IMF. However, annual consultation discussions have been held with the Hong Kong SAR authorities since October 1990. The IMF staff also holds discussions with the authorities in connection with the Global Financial Stability Report.

II.   Exchange Rate Arrangement

The Hong Kong dollar has been linked to the U.S. dollar under a currency board arrangement since October 1983 at a rate of HK$7.8/US$1. The market rate fluctuates around the linked rate, usually within a margin of less than 1 percent. There are no restrictions on current or capital account transactions in Hong Kong SAR, and the Hong Kong dollar is freely convertible. The People's Republic of China accepted the obligations under Article VIII, Sections 2, 3 and 4 of the IMF's Articles of Agreement on December 1, 1996.

III.   Resident Representative

The Hong Kong SAR Sub-Office was opened in January 2001. Mr. Olaf Unteroberdoerster has been the Resident Representative since February 2007.