Are you planning to stay in Hong Kong for a while or just visiting? Either way, getting to know its currency is very important. This guide will help you handle your money wisely. You’ll learn about the basics of the Hong Kong dollar, smart ways to exchange money and more!

Understanding the Hong Kong Dollar before exchanging currency

• Currency Code: HKD

• Symbol: HK$

The Hong Kong dollar is the official currency of Hong Kong, issued by three commercial banks under the supervision of the Hong Kong Monetary Authority (HKMA). The HKD is pegged to the U.S. dollar within a narrow band of 7.75 to 7.85 HKD per USD, ensuring a stable exchange rate.

Common Denominations:

• Coins: 10¢, 20¢, 50¢, $1, $2, $5, $10

• Banknotes: HK$10, HK$20, HK$50, HK$100, HK$500, HK$1,000

Current Exchange Rates

Note: Exchange rates fluctuate daily. Always check the latest rates before making transactions.

Accessing Money in Hong Kong

ATMs

• Widely available and accessible 24/7.

• Check with your home bank regarding international withdrawal fees. Some global banks (like HSBC, Citi) waive fees for certain account types.

• Tip: Always choose to be charged in HKD rather than your home currency to avoid unfavorable exchange rates.

Currency Exchange Services

• Licensed Operators: Use authorized money service operators listed by the HKMA.

• Where to Find Good Rates:

  • Chungking Mansions in Tsim Sha Tsui is famous for competitive rates.

  • Local banks like HSBC, Hang Seng Bank, and Bank of China offer safe if slightly less competitive exchanges.

• Avoid: Exchanging at airports or hotels where rates and fees are worse.

• Tip: Research online comparison sites before exchanging large amounts.

Digital Wallets and Alternative Payments Available in Hong Kong

Digital payments are booming in Hong Kong, with services like AlipayHK, WeChat Pay, and the Octopus Card making everyday transactions easier. While AlipayHK and WeChat Pay may require a local phone number or bank account for full functionality, tourists and newcomers can still easily use an Octopus Card. Available at airports and MTR stations, the Octopus Card can be topped up with cash and used for transportation and dining, making it a convenient cashless option.

Tips for Managing Currency Exchange

Smart money management begins with being well-informed. Always check the current exchange rates before converting money to ensure you're getting the best deal possible. If you're using your credit or debit card while traveling, choose to be charged in HKD instead of your home currency. Why? Dynamic currency conversion often gives you a worse exchange rate. 

Try exploring digital options like AlipayHK or the Octopus Card as well. They often provide better rates compared to old-fashioned methods. By planning your transactions carefully, you can avoid extra fees and make your financial experience smoother and more rewarding. 

Is Cash Still Necessary in Hong Kong?

Although digital payments are on the rise, cash still plays an important role in Hong Kong’s daily life. Around 82% of residents continue to rely on cash, especially for smaller transactions. It's common to encounter cash-only vendors at street food stalls (dai pai dong), local eateries (cha chaan teng), traditional markets, and even in some taxis. Additionally, cash holds some cultural significance as well. During Lunar New Year and other celebrations, it's customary to give "lai see" (red packets) filled with money as a gesture of goodwill and prosperity. For these reasons, it's advisable to carry between HK$500 and HK$1,000 in cash to cover everyday purchases and unexpected situations.

Safety Tips

While Hong Kong remains one of the safest cities in the world, it's still important to take basic precautions when dealing with currency exchange. Always use licensed money service operators, which are regulated by the HKMA. This is to ensure you receive fair rates and avoid scams. Exercise caution when approached by street exchangers in tourist hotspots. Unlicensed operators might offer tempting rates but could involve hidden fees or counterfeit bills. It's also wise to limit the amount of cash you carry at any one time, keeping larger sums securely stored and only taking what you need for daily expenses.

Quick FAQs

Can I use US dollars or Chinese yuan in Hong Kong?

• No, only HKD is accepted widely.

Is tipping common in Hong Kong?

• Not mandatory. Service charges are often included. Rounding up small amounts is appreciated.

Can tourists easily set up a digital wallet?

• It can be tricky without a local bank account but the Octopus Card is a great cashless alternative for a variety of things.

Where should I exchange money?

• For the best rates, check Chungking Mansions or licensed money changers in Central or Tsim Sha Tsui.

Final Thoughts

Navigating currency exchange in Hong Kong is straightforward with a bit of preparation. Use ATMs wisely, avoid poor exchange rates at airports and hotels, and embrace digital payments where possible. Keeping cash handy for small vendors and understanding the nuances of local payment culture will help you settle in smoothly.

We hope your trip and or relocation goes smoothly with these tips!