The Hong Kong Dollar Was not Named After the US Dollar

In 1846, the Oriental Bank issued the first banknotes in Hong Kong denominated in Hong Kong dollars. Seventeen years later, in 1863, the Hong Kong dollar became legal tender in the then-British colony, long before the government passed the Currency Ordinance on November 9, 1935, officially declaring the Hong Kong dollar as the distinct, unified local monetary unit. Yet, contrary to what one might expect, the Hong Kong dollar was not named after the US dollar—even though it is pegged to the American currency today.

When the British took possession of Hong Kong Island in 1841 and established a free trading port, there was no official currency in the territory. Instead, merchants used a chaotic mix of Chinese silver sycees, copper cash coins, Indian rupees, and European silver pieces.

Initially, Great Britain tried to force Hong Kong to use the British pound sterling. However, local merchants rejected it, preferring the Spanish dollar—and later the Mexican “8 Reales” pieces (Eagle dollar)—then widely used in South China and across Southeast Asia through Spanish trade networks in Manila.

To standardise the local market, the Royal Mint began issuing official local coins in 1863. In 1866, the short-lived Hong Kong Mint opened in Causeway Bay to strike silver coins locally. This legally solidified the "dollar" as Hong Kong's unit of account.