Black Saturday, 24 September 1983, is the name given to the crisis when theHong Kong dollar exchange rate versus theUnited States dollar was at an all-time low. On that day, US$1 exchanged for HK$9.6.[1] For a period,Hong Kong stores began quoting products in US dollar prices, because of the uncertain fluctuation in domestic currency.
From November 1974 to October 1983, Hong Kong was under a floating rate regime. The political talks of Hong Kong'shandover of sovereignty to China involvingUK'sPrime MinisterMargaret Thatcher's visit toBeijing began to send consumer confidence down in 1982. The stalling of theSino-British Joint Declaration also contributed to a pessimistic attitude. The collection of events eventually resulted in "Black Saturday”, which came in the form of a currency, banking and fiscal crisis.[2]
The government responded with alinked exchange rate on 17 October 1983.