If you’ve just landed at Chek Lap Kok and pulled a handful of bills from an ATM, you might think you’ve been handed play money or, worse, a stack of sophisticated counterfeits. Why does the $100 bill in your left hand look like a sleek corporate brochure from HSBC, while the one in your right hand features the Bank of China’s logo and a completely different artistic vibe?
It’s confusing. Most places have one central bank. The US has the Fed; the UK has the Bank of England. But in Hong Kong, the question of what Hong Kong currency is actually legal tender comes with a triple-layered answer.
Three different commercial banks—HSBC, Standard Chartered, and the Bank of China—all print their own versions of the banknotes. They’re all real. They’re all worth exactly the same. And honestly, they’re some of the most beautiful pieces of paper (and plastic) you’ll ever keep in your wallet.
The Three Kings of the Hong Kong Dollar
You’ve gotta understand that the Hong Kong Monetary Authority (HKMA) acts as the referee, but it doesn't usually print the "big" money. Instead, it authorizes those three big-name banks to do the heavy lifting for the $20, $50, $100, $500, and $1,000 notes.
The $10 note is the weird cousin. It’s the only one issued directly by the Hong Kong Government. You’ll notice it immediately because it’s purple and often made of polymer—a fancy way of saying it’s plastic. You can’t tear it. You can’t easily soak it. It’s basically indestructible, which is great because $10 notes see a lot of action in wet markets and taxi cabs.
Since 2018, the three banks have actually tried to play nice by coordinating their designs. If you look at the 2018 series, they all follow thematic patterns:
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- $1,000: Hong Kong as a financial hub (The "Gold Fish" because of the color).
- $500: The Geopark's hexagonal rock columns.
- $100: Cantonese Opera (super colorful).
- $50: Butterflies.
- $20: Yum Cha and tea culture.
Even with these shared themes, each bank puts its own spin on it. HSBC might highlight its iconic lions, Stephen and Stitt, while the Bank of China shows off its famous triangular skyscraper designed by I.M. Pei.
Why the Exchange Rate Never Seems to Move
Ever noticed that the HKD to USD rate stays remarkably boring? That’s not an accident. Since 1983, Hong Kong has operated under the Linked Exchange Rate System (LERS).
Basically, the HKD is pegged to the US Dollar. It’s allowed to wobble slightly within a very tight band: $7.75 to $7.85 HKD for every $1 USD. If it gets too close to the edges, the HKMA steps in with its massive war chest of foreign reserves to buy or sell currency and keep things stable.
For travelers, this is a dream. You don't have to worry about the value of your money cratering overnight while you’re eating dim sum in Mong Kok. It’s one of the most stable setups in the world, though economists love to argue about whether it’ll eventually be pegged to the Chinese Yuan (RMB) instead. For now, in 2026, the USD link remains the "cornerstone," as the HKMA calls it.
Don't Get Caught With a "Big Bull"
Here’s a tip from someone who’s lived it: don’t try to pay for a $20 bowl of wonton noodles with a $1,000 note.
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In local slang, the $1,000 note is called a "Gold Dragon" or "Big Bull." Because they were frequently counterfeited years ago, many small shops and even some convenience stores have "No $1,000 Notes" signs plastered on their registers.
If you go to an ATM, try to get $500s or $100s. The $500 note (the "Brown Cow") is widely accepted almost everywhere. If you’re stuck with a $1,000 bill, your best bet is to break it at a high-end department store or a supermarket like City’super or Wellcome.
A Quick Guide to the Coins
The coins are a bit more straightforward, though they’re heavy as lead if you let them pile up.
- $10: Bimetallic (gold center, silver rim). Rare but cool.
- $5: Thick, heavy, and has "Hong Kong Five Dollars" engraved on the edge.
- $2 and 20 cents: These are scalloped (wavy edges).
- $1, 50 cents, and 10 cents: Standard circular coins.
Most people try to avoid coins entirely by using an Octopus Card, which is the real "currency" of the city. You can use it for the MTR, buses, 7-Eleven, and even some doctors' offices.
Is Cash Still King in 2026?
You might hear people say Hong Kong is going cashless. Kinda true, kinda not.
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While WeChat Pay, AlipayHK, and PayMe are everywhere, there are still corners of the city that only take physical bills. If you’re heading to a traditional Dai Pai Dong (open-air food stall) or taking an older red taxi, you’ll need cash.
The city is also deep into its "Project e-HKD+" trials. This is a digital version of the Hong Kong Dollar. As of early 2026, the HKMA has finished its second phase of testing, focusing on things like "programmable payments" and settling "tokenized assets." It’s not meant to replace your physical bills yet, but it’s laying the groundwork for a future where your $100 note exists only on a blockchain.
Actionable Tips for Handling Your Money
If you're heading to the city soon, follow these rules to avoid headaches:
- Ask for the "Brown Cow": When using an ATM, if it gives you a choice of denominations, pick $500s over $1,000s.
- Get an Octopus Card Immediately: You can buy them at the airport or any MTR station. It’ll save you from carrying a kilo of $2 coins.
- Check the "Bauhinia": All modern coins and government-issued notes feature the Bauhinia flower. If you see a coin with Queen Elizabeth II on it, don't panic—it's still legal tender, though they're becoming collector's items.
- Exchange at Chungking Mansions: If you’re bringing physical cash from home (USD, EUR, etc.), the exchange stalls in the ground floor of Chungking Mansions in Tsim Sha Tsui usually offer the best rates in the city, far better than the airport or banks.
The most important thing to remember about what Hong Kong currency to use is that diversity is normal. Whether your bill is blue, green, or purple, and whether it was printed by HSBC or the government, it’s all good. Just keep a few "plastic" tens in your pocket for the taxi ride home, and you’ll be fine.