Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) announced today (Thursday) that the total assets of the Exchange Fund amounted to HK$3,071.0 billion as at 30 June 2014, HK$50.8 billion higher than that at the end of May 2014.  Foreign currency assets increased by HK$51.2 billion while Hong Kong dollar assets decreased by HK$0.4 billion.

The rise in foreign currency assets was mainly due to valuation gains on foreign currency investments, the purchase of foreign currencies with Hong Kong dollars and an increase in unsettled purchases of securities.  The decline in Hong Kong dollar assets was mainly due to the sale of Hong Kong dollars for foreign currencies and fiscal drawdowns.  These decreases were largely offset by an increase in Exchange Fund Bills and Notes issued but not yet settled.

The Currency Board Account shows that the Monetary Base at the end of June 2014 was HK$1,262.8 billion, increased by HK$2.1 billion, or 0.2%, from the end of May 2014.  The rise was due to an increase in the outstanding amount of Certificates of Indebtedness.

The amount of Backing Assets increased by HK$1.1 billion, or 0.1%, to HK$1,358.0 billion.  The rise was attributable to an increase in assets connected with the issuance of additional Certificates of Indebtedness, which was partly offset by revaluation losses.  The backing ratio decreased from 107.63% at the end of May 2014 to 107.54% at the end of June 2014.

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

Hong Kong Monetary Authority
31 July 2014

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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 July 2014, the scheduled dates for issuing the press releases are as follows: