Black Saturday (1983)
Encyclopedia
Black Saturday is the name given to the crisis when the Hong Kong dollar
exchange rate was at an all-time low. On that day, the USD
$1 = HKD
$9.6. For a period, Hong Kong
stores began quoting products in US dollar prices, because of the uncertain fluctuation in domestic currency.
back to China involving UK's Prime Minister
Margaret Thatcher
’s visit to Beijing
began to send consumer confidence down in 1982. The stalling of the Sino-British Joint Declaration
also contributed to a pessimistic attitude. The collection of events eventually resulted in "Black Saturday,” which came in the form of a currency, banking and fiscal crisis.
Hong Kong dollar
The Hong Kong dollar is the currency of the jurisdiction. It is the eighth most traded currency in the world. In English, it is normally abbreviated with the dollar sign $, or alternatively HK$ to distinguish it from other dollar-denominated currencies...
exchange rate was at an all-time low. On that day, the USD
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
$1 = HKD
Hong Kong dollar
The Hong Kong dollar is the currency of the jurisdiction. It is the eighth most traded currency in the world. In English, it is normally abbreviated with the dollar sign $, or alternatively HK$ to distinguish it from other dollar-denominated currencies...
$9.6. For a period, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
stores began quoting products in US dollar prices, because of the uncertain fluctuation in domestic currency.
History
From November 1974 to October 1983, Hong Kong was under a floating rate regime. The political talks of Hong Kong's handover of sovereigntyTransfer of the sovereignty of Hong Kong
The transfer of sovereignty over Hong Kong from the United Kingdom to the People's Republic of China, referred to as ‘the Return’ or ‘the Reunification’ by the Chinese and ‘the Handover’ by others, took place on 1 July 1997...
back to China involving UK's Prime Minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...
Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
’s visit to Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
began to send consumer confidence down in 1982. The stalling of the Sino-British Joint Declaration
Sino-British Joint Declaration
The Sino-British Joint Declaration, formally known as the Joint Declaration of the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China on the Question of Hong Kong, was signed by the Prime Ministers, Zhao Ziyang and Margaret...
also contributed to a pessimistic attitude. The collection of events eventually resulted in "Black Saturday,” which came in the form of a currency, banking and fiscal crisis.