All interest rates are nominal rates.
The Exchange Fund papers program was introduced in March 1990 as a money instrument to facilitate monetary management in Hong Kong. These instruments are fully backed by foreign exchange reserves. The Base Rate forms the foundation on which different discount rates are computed and for use in the repos in respect of different percentage thresholds of Exchange Fund paper held by licensed banks. The HKMA announces the Base Rate every day before the interbank market opens in Hong Kong. The discount rate applicable for the first 50 percent holding of Exchange Fund paper held by a licensed bank is the Base Rate.