When Hong Kong had officially declared a free trading port country in 1841, they had no official currency. Instead, the state relied on currency from other nations such as Indian rupees, Spanish and Mexican eight Reales. During the 1860's London developed special coinage for Hong Kong to use as a form of currency. They used silver dollar and half dollar coins. At the time these coins were similar what Mexico was using.In 1868, the Hong Kong Mint was shut down, and the country was faced with a loss of $440,000. The machines used to produce the Hong Kong Mint were sold to Japan to help produce Yen coins in the early 1870's.By 1873 the value of silver coins fell, and gold-based currencies started to grow. The United States and Canada were using gold in their money compared to China who was still using silver. China's currency lost value compared to the United States and Canada.Fast forward to 1935 and only Hong Kong was still using silver money. It was only a year later that the Hong Kong Dollar was introduced. In 1939 it became Hong Kong's official currency, and the value was set at $16 = £1.In Hong Kong, the government is basically in full control of the money supply. The government decided when handing out their currency. There are just three banks managed by one central bank, the Hong Kong Monetary Authority. Hong Kong has one of the biggest money reserves in the world. There is $361 billion held in Hong Kong.