HKMA Pushes Local-Currency Payments to Strengthen Asia’s Geopolitical Resilience

The HKMA local-currency payments initiative is gaining traction as Hong Kong seeks to expand regional use of local currencies in trade and financing to mitigate geopolitical risk.

HKMA CEO Eddie Yue said tariff shocks, supply-chain disruptions and volatile markets highlight the urgency of deeper integration across Asia-Pacific.

He urged expanded payments connectivity, broader local-currency settlement, stronger regional bond markets and better hedging tools to reinforce the HKMA local-currency payments strategy.

Local-currency bonds in emerging East Asia stood at USD28.6tr at end-June, up 3% quarter on quarter.

Hong Kong has linked its Faster Payment System with Thailand and mainland China and is exploring cross-border settlement through the mBridge CBDC project.