Why Hong Kong Is the Top Choice for Dollar Payments?

Why Hong Kong Has Become the Preferred Choice for U.S. Dollar Payments in the Wave of Financial Globalization

In the tide of financial globalization, why has Hong Kong become the preferred hub for U.S. dollar payments? As global economic integration deepens and cross-border capital flows become increasingly frequent, businesses and individuals are demanding more efficient, convenient, and secure international payment methods. Among the world’s major financial centers, Hong Kong has gradually emerged as a key hub for dollar transactions, thanks to its unique financial system and market environment.

Especially against the backdrop of shifting geopolitical dynamics and heightened currency volatility, more and more businesses and individuals are choosing to conduct dollar settlements through Hong Kong-driven by several underlying factors.

First and foremost, Hong Kong boasts a highly liberalized financial system and is one of the most open financial markets in the world. As a global financial center, Hong Kong operates under a linked exchange rate system, under which the Hong Kong dollar is pegged to the U.S. dollar, maintaining a stable exchange rate. This institutional design ensures strong convertibility and stability of the Hong Kong dollar. According to data released by the Hong Kong Monetary Authority HKMA, as of the end of 2025, the total U.S. dollar deposits in Hong Kong’s banking system continued to grow, reflecting strong market confidence in dollar assets. Moreover, Hong Kong imposes no foreign exchange controls, allowing free inflows and outflows of capital. This high level of liquidity makes it a preferred platform for corporate cross-border dollar settlements.

Secondly, Hong Kong’s financial infrastructure is robust, with strong capabilities in U.S. dollar clearing. Data from SWIFT Society for Worldwide Interbank Financial Telecommunication shows that Hong Kong’s share in global dollar payments has been steadily increasing, entering the top five globally by the third quarter of 2025. This achievement is attributed to the maturity of Hong Kong’s financial market and its close connections with major global financial institutions. Many international banks and financial institutions have established branches in Hong Kong, offering efficient dollar clearing and settlement services that significantly reduce transaction times and intermediary costs.

Changes in the global trade and investment landscape in recent years have also driven more capital flows through Hong Kong for dollar payments. Affected by global supply chain adjustments and policy uncertainties in certain countries, many multinational corporations are increasingly risk-averse when choosing settlement channels. Hong Kong, with its sound legal system, transparent regulation, and stable business environment, has become a neutral ground for many companies. According to reports from the South China Morning Post, since the second half of 2025, several Asian and Western companies have relocated their regional financial centers to Hong Kong to take advantage of its efficient dollar settlement system in response to global market uncertainties.

It is worth noting that although Hong Kong's offshore RMB business is growing rapidly, the U.S. dollar still dominates, particularly in areas such as commodity trade, overseas investment, and cross-border loans. Despite the acceleration of RMB internationalization, the U.S. dollar remains the world’s preferred reserve and settlement currency. Even in the context of increased RMB usage, many companies still opt for dollar pricing and settlement via Hong Kong to minimize the costs and risks associated with currency conversion.

Another significant factor is the technological advancements that are reshaping payment methods. In recent years, Hong Kong has actively promoted fintech development, encouraging the application of emerging technologies such as blockchain and digital banking in the payment sector. For instance, in November 2025, the HKMA announced the launch of Phase II testing for the multilateral Currency Bridge mBridge project, aimed at enhancing cross-border payment efficiency. The project supports real-time settlement in multiple currencies, with the U.S. dollar playing a major role, further strengthening Hong Kong’s position in the global dollar payment network.

From the perspective of individual users, an increasing number of high-net-worth individuals are shifting their asset allocations toward dollar-denominated assets and conducting related transactions through Hong Kong. Due to Hong Kong’s relatively lenient tax regime, strong privacy protection, and convenient U.S. dollar account services offered by local banks, many investors are opening accounts in Hong Kong for purposes such as overseas education, property investment, and wealth management. This trend indirectly boosts Hong Kong’s activity within the global dollar payment network.

In summary, in today’s era of ongoing financial globalization, Hong Kong has become the preferred platform for U.S. dollar payments thanks to its open and liberal financial system, well-developed infrastructure, stable legal environment, and flexible technological support. These factors together form an efficient, secure, and reliable U.S. dollar payment ecosystem that meets the cross-border transaction needs of enterprises while offering diverse financial service options for individual users. Looking ahead, as the global economic landscape continues to evolve, Hong Kong’s role in the global dollar payment system is poised to further strengthen.