The Hong Kong Monetary Authority (HKMA) has intervened in the currency market to defend the Hong Kong dollar's peg to the U.S. dollar. Since May 3, 2025, the HKMA has injected a cumulative total of HKD 116.6 billion (approximately $15 billion) to maintain the currency's exchange rate within the established lower band of 7.7500 HKD per USD. This marks the first time in nearly five years that the HKMA has triggered the strong-side convertibility undertaking. The intervention has led to a significant drop in the Hong Kong Dollar Interbank Offered Rate (HIBOR), with the funding cost plunging by the largest margin since the 2008 Global Financial Crisis. Additionally, the yuan's three-month interbank offered rate in Hong Kong has fallen to an all-time low amid these market developments. The move comes amid broader concerns about the stability of the Hong Kong dollar peg following regional geopolitical tensions, including the Taiwan crisis, prompting speculation about potential challenges to the currency's fixed exchange rate system.