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The Hong Kong Dollar

The Hong Kong dollar’s share in daily transactions is about 2.4 percent. When the British occupied Hong Kong and established a free trading port in 1841, there was no local currency in circulation. Various foreign currencies, including Spanish, Mexican, and other silver dollars; the Indian rupee; and Chinese currencies were used as a medium of exchange.

During the early years of the colony, the Hong Kong government also tried to promote the use of pound sterling. Between 1845 and 1859, three note-issuing banks were introduced. Finally, in 1863 the Hong Kong government declared silver (Hong Kong) dollars to be the legal tender. In 1898, China leased Hong Kong to Britain for 99 years. In 1997, Hong Kong became a Special Administrative Region of the People's Republic of China.

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