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$2,560.6 billion as at 31 August 2012.

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 August 2012 the total assets of the Exchange Fund, at HK$2,560.6 billion, were HK$47.2 billion lower than at the end of July 2012.  Foreign currency assets increased by HK$1.1 billion while Hong Kong dollar assets decreased by HK$48.3 billion.

The rise in foreign currency assets was mainly due to purchases of foreign currencies with Hong Kong dollars, valuation gains on foreign currency investments and an increase in Certificates of Indebtedness.  These increases were largely offset by a decrease in unsettled purchases of securities. 

The decline in Hong Kong dollar assets was mainly due to a decrease in Exchange Fund Bills and Notes issued but not yet settled, sales of Hong Kong dollars for foreign currencies and fiscal drawdowns.  These decreases were partly offset by an increase in bank borrowings.

The Currency Board Account shows that the Monetary Base at the end of August 2012 was HK$1,090.3 billion, an increase of HK$4.2 billion, or 0.4%, from the end of July 2012.  The rise was mainly due to an increase in Certificates of Indebtedness.

The Backing Assets increased by HK$4.6 billion, or 0.4%, to HK$1,190.0 billion.  The increase was mainly attributable to the issuance of Certificates of Indebtedness and interest from investments which were partly offset by revaluation losses.  At the end of August 2012, the backing ratio remained unchanged at 109.14%.

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

Hong Kong Monetary Authority
28 September 2012

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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 September 2012, the scheduled dates for issuing the press releases are as follows: