Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) announced today (Friday) that the total assets of the Exchange Fund amounted to HK$1,833.2 billion on 30 June 2009.

The figure is included in the Exchange Fund Abridged Balance Sheet, which is released monthly together with the Currency Board Account.

At the end of June 2009 the total assets of the Exchange Fund, at HK$1,833.2 billion, were HK$73.1 billion higher than at the end of May 2009. Foreign currency assets increased by HK$52.3 billion and Hong Kong dollar assets increased by HK$20.8 billion.

The rise in foreign currency assets was due mainly to an increase in securities purchased but settled in the following month and purchases of foreign currencies with Hong Kong dollars. The rise in Hong Kong dollar assets was due mainly to increases in Exchange Fund Bills and Notes issued but not yet settled and bank borrowings. These increases were partly offset by fiscal drawdowns.

The Currency Board Account shows that the Monetary Base at the end of June 2009 was HK$704.7 billion, an increase of HK$14.4 billion, or 2.1%, from the end of May 2009. The rise in the Monetary Base was due mainly to an inflow of funds into the Hong Kong dollar. The issuance of additional Exchange Fund paper during the month reduced the level of the Aggregate Balance which represented a change in the composition of the Monetary Base.

The Backing Assets increased by HK$14.0 billion, or 1.9%, to HK$747.9 billion. The increase was attributable mainly to the rise in the Monetary Base together with interest from investments. These increases were partly offset by revaluation losses. Reflecting this, the backing ratio declined from 106.32% at the end of May 2009 to 106.13% at the end of June 2009.

Attachment
Annex 1 : Abridged Balance Sheet of the Exchange Fund
Annex 2 : Currency Board Account

For further enquiries, please contact:
Hing-fung Wong, Manager (Communications), at 2878 1802 or
Natalie Wu, Officer (Communications), at 2878 8246

Hong Kong Monetary Authority
31 July 2009

At present, four press releases relating to the Exchange Fund's data are issued by the HKMA each month. Three of these releases are issued to disseminate monetary data in accordance with the International Monetary Fund's Special Data Dissemination Standard (SDDS). The fourth press release, on the Exchange Fund's Abridged Balance Sheet and Currency Board Account, is made in accordance with the HKMA's policy of maintaining a high level of transparency. For the month of July 2009, the scheduled dates for issuing the press releases are as follows: