5.7 Banking and Currency

Following the liquidation of all "enemy banks" such as the Hong Kong and Shanghai Banking Corporation, the Chartered Bank and the Mercantile Bank of India, only Chinese banks were allowed to provide limited services.

The Yokohama Specie Bank and the Bank of Taiwan were given the prerogative of issuing and exchanging military yen, the legal currency.

As time went on, Hong Kong was flooded with so much military yen that it became virtually worthless.

Credit : History Museum of HK.