If you’ve ever looked at a handful of cash in Hong Kong, you might have noticed something kinda weird. The $20 bill in your left hand looks nothing like the $20 bill in your right. One might be a vibrant blue with a giant lion on it, while the other is a different shade of blue featuring a futuristic-looking building. No, you haven't been handed play money. It's just one of the quirks of the Hong Kong Dollar (HKD), a currency that operates like almost nowhere else on Earth.
What is the currency of Hong Kong exactly?
Basically, the official currency is the Hong Kong Dollar, usually abbreviated as HKD or simply $. Sometimes you'll see HK$ to make sure nobody confuses it with the US dollar or the Aussie dollar.
Since 1983, the Hong Kong dollar hasn't been "free." It doesn't just wander around the market value-wise like the Euro or the Yen. Instead, it’s strictly tethered to the US dollar through something called the Linked Exchange Rate System (LERS). Think of it as a financial bungee cord. The Hong Kong Monetary Authority (HKMA) keeps the rate locked within a tight "Convertibility Zone" between 7.75 and 7.85 HKD to 1 USD.
Honestly, this peg is the bedrock of the city's economy. It provides stability in a place that is essentially a giant, open-door trading post. If the HKD gets too strong, the HKMA sells it. If it gets too weak, they buy it back using their massive mountain of foreign exchange reserves. It’s a mechanical, transparent system that has survived market crashes, handovers, and global pandemics without snapping.
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Why do the banknotes look so different?
This is where travelers usually get tripped up. Most countries have one central bank that prints the money. Not Hong Kong. Here, the government has authorized three different commercial banks to design and print their own notes:
- HSBC (The Hongkong and Shanghai Banking Corporation)
- Standard Chartered
- Bank of China (Hong Kong)
Because each bank has its own design team, you end up with three different "flavors" of the $20, $50, $100, $500, and $1,000 bills. The colors stay the same—$50 is green, $100 is red—but the artwork varies wildly. HSBC loves their iconic lions (Stephen and Stitt), while the Bank of China usually showcases their famous zig-zagging skyscraper.
Wait, there's a catch. The $10 bill is the odd one out. The government decided to keep control of that one themselves. You’ll see purple paper versions and a very cool-looking, transparent polymer (plastic) version. They are all legal tender. You can pay for your dim sum with a mix of all three bank designs and a government $10 note, and no one will blink.
A quick breakdown of what's in your wallet:
- Coins: 10c, 20c, 50c (all bronze-colored), $1, $2, $5 (silver-colored), and the chunky bimetallic $10 coin.
- Notes: $10, $20, $50, $100, $500, and the "Big Orange" $1,000 bill.
Pro tip: Some small shops or "wet markets" actually refuse to take $1,000 bills because they’re afraid of counterfeits or just don't have enough change. It's usually better to keep smaller denominations on you for the daily stuff.
Can you use Chinese Yuan (RMB) in Hong Kong?
You’d think since Hong Kong is part of China, the money would be the same. It's not.
Mainland China uses the Renminbi (RMB), often called the Yuan. While many big tourist shops, pharmacies like Mannings, and 7-Elevens in Hong Kong will technically accept RMB cash, you’re going to get a "tourist exchange rate." Often, they'll just trade it 1:1, which is a terrible deal for you because the HKD is usually worth less than the Yuan.
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If you're coming from the mainland, you're better off using Alipay or WeChat Pay. These apps are ubiquitous in Hong Kong now. They handle the conversion automatically at a much fairer rate than a cashier at a convenience store will give you.
Spotting the fakes: Feel, Look, Tilt
Counterfeiting isn't a massive problem, but it happens, especially with those $500 and $1,000 notes. The HKMA has a simple "Feel-Look-Tilt" rule that sounds like a dance move but actually works.
Feel: The paper notes are made of cotton, so they feel "crispy" and slightly rough. Genuine notes have embossed printing. If you run your finger over the large number or the bank name, you should feel a distinct raised texture.
Look: Hold the note up to the light. You should see a watermark of a Bauhinia flower. Also, look for the "see-through" features where patterns on the front and back perfectly align to form a single image.
Tilt: This is the coolest part of the 2018 series. When you tilt the note, there’s a shimmering ring in the top right corner that actually moves. There's also a metallic thread woven into the paper that changes color and has small rings that seem to rotate. If it's just a flat, shiny sticker, it's a fake.
The Octopus Card: The "Real" Currency
Ask any local what the "real" currency of Hong Kong is, and they might point to a small plastic card in their wallet. The Octopus Card is a stored-value smart card that started for the MTR (subway) but took over the city.
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You can use it at:
- Vending machines
- Public buses and ferries
- Supermarkets
- Parking meters
- Fast food joints
- Public swimming pools
Honestly, carrying a lot of cash is becoming less common. Most people just "beep" their way through the day. If you’re visiting, you can get a tourist Octopus or just use the Octopus for Tourists app on your iPhone or Android to tap-and-go with your phone's NFC. It’s way easier than fumbling with 20-cent coins.
Actionable Insights for your trip
Don't overthink the money. Hong Kong is a financial powerhouse; they make it very easy for you to spend your cash.
- Don't exchange money at the airport unless you absolutely have to. The rates are notoriously bad.
- Head to Chungking Mansions in Tsim Sha Tsui for some of the best exchange rates in the city. There are dozens of kiosks, and competition keeps the spreads thin.
- Withdraw from ATMs. Most ATMs in Hong Kong (HSBC, Jetco) accept international Visa or Mastercard. Just watch out for your own bank’s foreign transaction fees.
- Keep your coins. Bus drivers in Hong Kong do not give change. If the fare is $5.80 and you only have a $10 coin, you're paying $10. Use an Octopus card to avoid the "bus tax."
- Check your $1,000 bills. If you're handed one, just do the quick "tilt" test to see the shimmering ring. It takes two seconds and saves a lot of headache later.
Hong Kong is moving fast toward a cashless society with FPS (Faster Payment System) and digital wallets, but for now, the physical Hong Kong dollar remains one of the most unique and stable currencies in the world. Whether it's a polymer ten-spot or a gold-colored fifty, it's all part of the city's complex, multi-layered identity.
To get started, simply grab an Octopus card at the airport MTR counter—it’ll be the most important "currency" you use all week.