The Hong Kong dollar (sign: $; code: HKD) is the currency of Hong Kong. It is the 9th most traded currency in the world. The dollar is subdivided into 100 cents. When Hong Kong was established as a free trading port in 1841, there was no local currency in everyday circulation. Foreign currencies such as Indian rupees, Spanish and Mexican 8 reales, Chinese cash and British currency were employed. In 1845, the Spanish and Mexican 8 reales coins were set at a value of 4 shillings 2 pence sterling. Banknotes appeared in the 1860s, with a number of different private banks issuing notes.
From 1895, legislation was enacted in attempts to regulate the coinage. In 1935, the silver standard was replaced by a crawling peg to sterling of 1 pound = 15.36 to 16.45 dollars. The One-Dollar Currency Note Ordinance of that year lead to the introduction of 1 dollar notes by the government and the Government acknowledged the Hong Kong Dollar as the local monetary unit.