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$3,079.3 billion as at 31 July 2014, HK$8.3 billion higher than that at the end of June 2014.  Foreign currency assets increased by HK$35.6 billion while Hong Kong dollar assets decreased by HK$27.3 billion. 

The rise in foreign currency assets was mainly due to the purchase of foreign currencies with Hong Kong dollars, which was partly offset by exchange losses on foreign currency investments and the redemption of Certificates of Indebtedness.  The decline in Hong Kong dollar assets was mainly due to a decrease in Exchange Fund Bills and Notes issued but not yet settled and fiscal drawdowns.  These decreases were partly offset by an increase in bank borrowings and valuation gains on Hong Kong equities. 

The Currency Board Account shows that the Monetary Base at the end of July 2014 was HK$1,315.1 billion, increased by HK$52.3 billion, or 4.1%, from the end of June 2014.  The rise was mainly due to an increase in the Aggregate Balance, which was partly offset by a decrease in the outstanding amount of Certificates of Indebtedness. 

The amount of Backing Assets increased by HK$51.8 billion, or 3.8%, to HK$1,409.8 billion.  The rise was mainly attributable to the purchase of US dollars under the currency board system.  The backing ratio decreased from 107.54% at the end of June 2014 to 107.21% at the end of July 2014. 

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

Hong Kong Monetary Authority
29 August 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 August 2014, the scheduled dates for issuing the press releases are as follows: