Better to buy HKD with USD than with other currencies?
In a lot of places, the exchange rate for buying their currency with USD, is significantly better than buying with any other currency. Relative to the "inter-bank exchange rate" you see on Google Finance and such, it seems they offer a better deal if you buy in USD.
Does the same apply in HK ?
Specifically I'm considering either buying HKD with JPY or USD. I'm also wondering if rates are usually better in HK or in Japan.
Edit: I don't have enough points to reply to the comment on my own question, so I'll answer here. I already have USD cash. The question is whether the RATE is better relative to the inter-bank rate, for USD rather than other countries. Buying USD never factors into this question.
Best Answer
HKD is pegged to USD. It's usually at a rate of HKD7.75 = USD1. It has been pegged for several decades now.
So technically there shouldn't be a difference with regards to purchasing using USD or HKD. If there is, the difference is marginal (less than 0.01%). You will find more fluctuation between JPY and HKD (and USD) because JPY is not "permanently" pegged to HKD or USD.
With that said, USD is generally more accepted than HKD, and you may find that the currency exchange you're changing money with will not accept HKD. As such, as a rule of thumb it is better to carry USD over HKD. Hope this helps.
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